USD/JPY technical analysis: 107.45/40 restricts immediate declines

• USD/JPY reversed from 108.48/50 horizontal-resistance.
• 200-bar EMA, support-line of short-term rising channel limit further weakness.

Although 108.48/50 horizontal resistance triggered the USD/JPY pair’s pullback, prices are still above key short-term support confluence while taking the bids to 107.80 on early Wednesday.

While 108.20 can offer an intermediate halt during the pair’s another confrontation to 108.48/50 area, a successful break above the same might not refrain from challenging resistance-line of the one-month-old rising channel, near 109.30.

It should be noted that 12-bar moving average convergence and divergence (MACD) flashes a bearish signal and could direct sellers to again aim for 107.45/40 support-confluence that includes 200-bar exponential moving average (EMA) and lower-line of the aforementioned channel.

Further during the pair’s declines below 107.40, August 23 high nearing 106.70 will become bears’ favorite.

USD/JPY 4-hour chart

Trend: pullback expected