USD/JPY Current price: 117.50

The USD/JPY recovers from a daily low of 117.01, reached during Asian hours following a sharp selloff on Chinese stocks that lost over 6% after regulators moved to restrict margin lending. The short term technical outlook however remains neutral as the pair trades around its daily opening and the 1 hour chart shows indicators flat in neutral territory. In the 4 hours chart the price stands above its 20 SMA although indicators are also flat in neutral territory, giving no directional clues at the time being. The downside however remains favored albeit a break below 116.90 is required to confirm a stronger decline, quite unlikely for the upcoming sessions.

Support levels:  117.35 116.90 116.45

Resistance levels: 117.90 118.20 118.60
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