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.