USD/JPY technical analysis: Struggles around 38.2% Fibo., 3-week old support-line amid oversold RSI

• The pair’s move within a small region, oversold RSI indicates magnified volatility going forward.
• Limited room on the downside than otherwise.

Disrespecting its bounce from nearly one-month-old support-line and a pullback from 38.2% Fibonacci retracement, the USD/JPY pair is taking the rounds near 108.10 during early Wednesday.

While a break of 107.70 trend-line support can be followed by the January 04 lows around 107.50, an upside clearance of 108.35, comprising 38.2% Fibonacci retracement of November to January downturn, can aim for mid-May month low surrounding 109.00.

Considering the oversold levels of 14-day relative strength index (RSI), chances of the pair’s upside are much brighter than alternatively. In that case, pair’s rally past-109.00 may be challenged by the immediate resistance-line near 109.60.

Additionally, pair’s capacity to clear 109.60 resistance-line might not hesitate to target 100-day SMA and 61.8% Fibonacci retracement confluence around 110.60.

On the contrary, pair’s slump under 107.50 can please sellers by April 2018 bottom near 106.60 whereas 105.30 and the year 2019 low of 104.75 may entertain them afterward.

USD/JPY daily chart

Trend: Sideways to positive