FXStreet - USD/JPY was a strong trade to the downside in the US dollar's sell-off and while investors also ran for cover with global stocks falling, despite a comeback by the close in the US. The Yen was sold off and USD/JPY climbed up from the lows down on the 117.04 low and managed a score on the 118 handle at a high of 118.23 the high in early Asia. We are entering another phase of strong volatility in uncertain times while there are growing concerns that the US is headed for a recession, if it isn't already experiencing one and while the Fed may have to hold for longer before it can continue to gradually increase interest rates. However, for the time being, there remains the divergence between the Fed and BoJ and that should remain supportive. The nonfarm payrolls is the next major event that has the potential to rock the apple cart while a strong number could overshadow longer term concerns for the immediate time ahead. USD/JPY levels Technically, Valeria Bednarik, chief analyst at FXStreet explained, "The 1 hour chart for the pair shows that the technical indicators maintain strong bearish slopes below their mid-lines, while the price plunged below its 100 and 200 SMAs. In the 4 hours chart, the technical indicators maintain their sharp bearish slopes within extreme oversold levels, while the price retraced over 61.8% of its latest daily bullish run between 115.96 and 121.68, pointing for a continued decline towards the low of the range. " For more information, read our latest forex news.