USD/JPY technical analysis: Slips to fresh five-month lows

• USD/JPY has dropped to lowest since early January. 
• Daily chart favors drop below 107.00.
• Key indicator is reporting oversold conditions, so a minor bounce could be in the offing. 

The USD/JPY continues to lose altitude amid broad-based USD sell-off and escalating geopolitical tensions. 

The currency pair is currently trading at 107.20, having dropped to 107.12 a few minutes before press time. That was the lowest level since January 3. 

The pair is stuck in bearish channel with the 5- and 10-day moving averages trending north, meaning the path of least resistance is to the downside and further losses could be seen. 

The relative strength index, however, is now reporting oversold conditions with a below 30-print on daily, hourly and 4-hour charts. 

As a result, minor bounce to 107.50 could be seen before a potential drop below 107.00. 

Daily chart

Trend: Bearish

Pivot levels