USD/JPY technical analysis: Oversold RSI favors further increase from 107.55/50

• 9-day old horizontal support-zone triggered the USD/JPY pair’s U-turn amid oversold RSI.
• Immediate descending trend-line, 100-HMA seem on the buyers’ radar.

Having bounced off the near-term horizontal support-zone, amid oversold RSI, the USD/JPY pair takes the bids to 107.62 during early Wednesday.

A 2-day old descending trend-line at 107.75 and 100-hour moving average (100-HMA) seem immediate resistances to watch whereas June 27 high around 108.17 can please the buyers then after.

Assuming the price rally beyond 108.17, current month high surrounding 108.54 and June-end tops surrounding 108.85 could be targeted if holding long positions.

Alternatively, bears’ resistance in respecting 14-bar relative strength index (RSI) highlights the importance of 107.25 and June 25 bottom close to 106.80

USD/JPY hourly chart

Trend: Pullback expected