The USD/JPY pair is on a recovery mode after the recent sell-off. The pair found a decent support around 107.00 and pulled back after testing this mark. The US dollar recovered to the 107.50 area during the European hours on Wednesday. The resistance lies at 108.00, the support comes in at 107.00.
In order to recover some strength, USD/JPY needs to rise back and hold above 108.50. However, we do not believe in this scenario. Sellers will most likely return and drag this pair towards 107.00