The USD/JPY pair gapped lower at the weekly opening, falling down to 107.83 before regaining the 108.00, still unable to confirm some additional gains. The market turned risk-averse at the beginning of the day, and sentiment has improved just modestly ahead of the US opening, but the risk remains towards the downside in the pair, as stocks continue trading in the red, although far from their daily lows. From a technical point of view, the 1 hour chart presents a neutral-to-bearish stance, as the price is developing well below its moving averages, whilst the Momentum indicator turned lower around its 100 level and the RSI heads higher around 47. In the 4 hours chart, the technical indicators have corrected oversold conditions reached earlier in the day, but remain well below their mid-lines, suggesting the pair may turn back south, particularly on a break below 107.95, the immediate support.
Support levels: 107.95 107.60 107.20
Resistance levels: 108.75 109.20 109.50