USD/JPY Price Analysis: Bears flirt with confluence support near 108.70

• USD/JPY trades sideways in the early Asian session.
• Pair remains in indecision, needs confirmation to move directionally.
• Momentum oscillator tilt in favor of downside momentum.

The USD/JPY pair remains reclusive to gain any meaningful momentum on Wednesday.The pair extended the previous day's sluggish move while confiding in a narrow trade band.

At the time of writing, the USD/JPY pair is trading at 108.77, up 0.01% on the day.
 

USD/JPY daily chart

On the daily chart, the pair has been consolidating for the past four sessions. The formation of Doji candlesticks near the 108.70 mark suggests indecision in the market. 

The Moving Average Convergence Divergence (MACD) indicator reads below the midline with a bearish crossover. This hints at the underlying bearish sentiment for the pair. If the MACD extends its decline, then price would be mirroring its action. 

In doing so, the first area of support for the bears would emerge near the lows of May 11 at 108.30 followed by the 108.12 horizontal support level.

Bears would next target for the April 26 low at 107.64.

Alternatively, a sustained move beyond the previous day’s closing at 108.80 could push the pair onto a higher trajectory with the first target in place coming at the 50-day Simple Moving Average (SMA) at 109.10. 

If price is able to hold onto the 50-day SMA, then it could further target at May 20 high at 109.30. The next on the bulls radar’s would be the 109.65 horizontal resistance level.

USD/JPY Additional Levels