USD/JPY: February monthly low to be challenged

The USD/JPY pair collapsed, trading a few pips above the monthly low of 108.31. Further declines are expected below this level, according to Valeria from FXStreet.

Key quotes

“USD/JPY is oversold, but firmly bearish according to the 4-hour chart, as technical indicators keep heading south, despite being in extreme levels.”

“In the mentioned time-frame, the pair is developing over 100 pips below all of its moving averages, with the 20 SMA already below the 100 SMA and about to cross the 200 SMA, all of which reflects the strength of sellers. The mentioned monthly low at 108.31 is the immediate support, with further declines expected once below it.”