USD/JPY technical analysis: Flirting with the 200-hour MA support

• USD/JPY is teasing a downside break of the recent trading range. 
• A break below the lower end of the trading range – 200-hour MA – would expose 107.45.

USD/JPY is currently trading around the 200-hour moving average (MA) support of 107.93. 

The downside has been restricted around the 200-hour MA since Sept. 18, meanwhile, the upside has been capped above 108.00. 

Acceptance below the 200-hour MA support would imply a resumption of the sell-off from recent highs near 108.50 and could yield a drop to the hourly chart support of 107.45. 

A range breakdown could happen if equities turn red, putting a bid under the safe-haven JPY amid heightened tensions in the middle east. 

The outlook, however, would turn bullish if the range is breached on the higher side. That would expose recent highs near 108.50. 

Hourly chart

Trend: Bearish below 200-hour MA

Technical levels