USDJPY now oversold

The US dollar has found technical support from the 107.00 level against the Japanese yen, following a major technical breakout below the 107.70 level. The USDJPY pair is now extremely oversold and may correct back towards the former breakout area. The daily time frame is showing that a huge bearish pattern has formed, with a five-hundred point downside projection.

• The USDJPY pair is bearish while trading below the 108.00 level, key support is found at the 107.00 and 106.40 levels.

• If the USDJPY pair trades above the 108.00 level, key technical resistance remains at the 108.60 and 109.00 levels.