In the past year, the USD/JPY has been a boring pair. Unlike other currency pairs, this pair has traded in a narrow range with a high of 115.29 and a low of 107.67.

As shown below, the pair has had a near-perfect horizontal support and resistance.

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Today, the pair erased the gains made in the past five days when the pair moved from a low of 108.39 to a high of 110.48. The pair is currently trading at 108.93.

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The decline is associated with the current global sell off in equities, which started in the United States on Friday.

To predict the future movements of the pair, I used the 6-month chart, which shows the downward pressure may take the pair downwards to the 107.32 level.

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An alternate scenario is where the pair bounces back after establishing a double bottom. This could see the pair touch the 108.8 level.