USD/JPY: A break below 108.20 is needed to extend the decline

USD/JPY is trading just below the 23.6% retracement of its latest daily advance at 109.20. Valeria Bednarik, a Chief Analyst at FXStreet, examines the USD/JPY pair from a technical standpoint. 

Key quotes

“In the 4-hour chart, the 20 SMA keeps easing above the current level, while the price is hovering around a flat 200 SMA.” 

“Technical indicators are resuming their declines within negative levels, after a modest bullish correction.” 

“Support levels: 108.20 107.75  Resistance levels: 109.25 109.60”