USD/JPY technical analysis: 19-week old support-line guards immediate downside

• USD/JPY retraces from key support-line amid oversold RSI levels.
• June low can act as immediate resistance ahead of 107.20/22 region.
• Bears can aim for January low on the downside break below the key support.

Having bounced off near-term falling support-line, the USD/JPY pair takes the bids to 106.17 during early Tuesday.

The pair now aims for June month low surrounding 106.78 while 107.20/22 horizontal area comprising mid-July low may limit further recovery.

It should, however, be noted that the quote’s run-up beyond 107.22 enables it to question 61.8% Fibonacci retracement of January – April rise, at 107.68, ahead of targeting 108.00 round-figure.

Also, its worth mentioning that the 14-bar relative strength index (RSI) is in the oversold condition and favors price pullback.

Meanwhile, pair’s downside break of 19-week old support-line, near 105.45/40, can quickly fetch it back to January month low of 104.75.

USD/JPY daily chart

Trend: Pullback expected