USD/JPY: Support at 105.35 is about to be eroded

USD/JPY is trading at the immediate support of 105.35. Valeria Bednarik, a Chief Analyst at FXStreet, takes a look at the technical picture of the USD/JPY pair.

Key quotes

“USD/JPY has retreated from the 61.8% retracement of its latest slump, now nearing the 38.2% retracement of the same decline at 105.35, the immediate support.” 

“The risk of a bearish extension seems limited at this point from a technical perspective, as, in the 4-hour chart, the 20 SMA maintains its bullish slope, converging with the mentioned Fibonacci support.”

“The Momentum indicator recovers within positive levels, while the RSI declines, currently at around 51, indicating limited selling interest at the time being. Below the mentioned support, a bearish extension seems more likely.”

“Support levels: 105.35 105.00. Resistance levels: 106.75 107.10”