USD/JPY technical analysis: Revisits key Fibo. support after sellers entered around 50-DMA

• 107.56/53 can validate the USD/JPY pair’s further declines after breaking 61.8% Fibonacci retracement level.
• 50-DMA and 50% Fibonacci retracement confluence limit immediate upside.

Having failed to cross the 50-day moving average (50-DMA) during last-week, USD/JPY chart portrays gradual declines to key Fibonacci retracement level while flashing 107.73 as a quote during early Thursday.

Given the downward sloping 14-day relative strength index (RSI) from nearly overbought conditions, prices are likely to carry weakness forward. However, 107.56/53 horizontal-line comprising current month low and June 24 high can question sellers.

Should prices slip below 107.53, June month low surrounding 106.78 and a four-month-old descending trend-line at 106.00 can act as buffers during the pair’s downpour to January bottom of 104.75.

Meanwhile, 108.40 can entertain short-term buyers ahead of challenging them with the 50% Fibonacci retracement of January – April upside and 50-DMA around 108.58/61.

It should also be noted that the quote’s rally past-108.61 could trigger fresh run-up towards crossing 109.00 round-figure.

USD/JPY daily chart

Trend: Bearish