USD/JPY: Neutral-to-bullish in the short-term

USD/JPY is neutral-to-bullish in the short-term as critical resistance sits at 108.00. Valeria Bednarik, a Chief Analyst at FXStreet, examines the USD/JPY pair from a technical perspective.

Key quotes

“The 4-hour chart shows that the USD/JPY pair continues to develop below a bearish 100 SMA and above a bullish 20 SMA, with the distance between both shrinking. One will have to give.” 

“The downside is being protected by buyers aligned around 105.35, the 38.2% retracement of the mentioned slump, while a critical resistance comes at 108.00, the 61.8% retracement.”

“Support levels: 106.50 106.10. Resistance levels: 107.10 107.60.”