USD/JPY steps back from monthly high as US Treasuries, Asian stocks dwindle.
50-day SMA, monthly resistance line guard immediate upside.
A two-week-old rising trend line on the bears’ radars.

Following another U-turn from 50-day SMA, USD/JPY drops to 107.73 amid the initial trading hours on Wednesday. In addition to the said SMA, an upward slopping trend line from April 30 also guards the pair’s immediate upside.

That said, the market’s risk-tone also sours off-late and adds burden to the safe-haven pair. While portraying the risk-tone, US 10-year Treasury yields drop two basis points (bps) to 0.69% while the MSCI index of Asia-Pacific shares outside Japan drops 0.10% by the press time.

As a result, sellers are targeting a fortnight-old ascending trend line, at 107.30 now, during the further declines.

Though, a clear break below 107.30 will confirm a short-term rising wedge bearish formation, which in turn will magnify the quote weakness towards revisiting the monthly low near 106.00.

Alternatively, a 50-day SMA level of 107.75 and the aforementioned resistance line around 108.10 could keep the buyers in check.

During the pair’s rise past-108.10, a 200-day SMA level of 108.30 will act as another upside barrier before the April month top of 109.38.

USD/JPY daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	107.75
Today Daily Change	0.04
Today Daily Change %	0.04%
Today daily open	107.71

Trends
Daily SMA20	107.06
Daily SMA50	107.78
Daily SMA100	108.46
Daily SMA200	108.3

Levels
Previous Daily High	108.09
Previous Daily Low	107.3
Previous Weekly High	107.77
Previous Weekly Low	106.5
Previous Monthly High	109.38
Previous Monthly Low	106.36
Daily Fibonacci 38.2%	107.79
Daily Fibonacci 61.8%	107.6
Daily Pivot Point S1	107.31
Daily Pivot Point S2	106.91
Daily Pivot Point S3	106.51
Daily Pivot Point R1	108.1
Daily Pivot Point R2	108.49
Daily Pivot Point R3	108.89

USD/JPY Price Analysis: Again retreats from 108.00 as trade sentiment sours