USDJPY – extended recovery to be ideally capped by daily Tenkan-sen / 10SMA

The dollar extends recovery from 105.54 (last Friday’s spike low) and probes above 107 handle in early Tuesday’s trading.
Daily RSI and slow stochastic are heading north after reversing from oversold territory and signaling further recovery, however overall picture is bearish and sees current action as corrective and positioning for fresh shorts.
Recovery eyes initial resistances at 107.31/43 (former low of 08 Sep / Fibo 38.2% of 110.48/105.54 bear-leg) ahead of 107.65 barrier (falling 10SMA / daily Tenkan-sen) which is expected to ideally cap.
Stronger correction could be expected on firm break above 107.65 which could spark further recovery towards 108.44/51 (20SMA / daily Kijun-sen).
The greenback is in recovery mode after suffering losses in past two weeks, as a part of broader weakness and will be looking from fresh signals.
A number of Fed speakers are scheduled this week, along with release of minutes of FOMC latest meeting, which could give fresh signals for the dollar.

Res: 107.31; 107.43; 107.65; 108.00
Sup: 106.55; 106.20; 106.09; 105.54