Overview: from the view of the daily chart USDJPY is showing its biggest drop for a few months. Market showing its major downfall nowadays, sellers should go for sell signals. Bears are showing their aggression on the market. Intraday bias in USD/JPY stays on the downside, deeper fall would be seen to retest 104.00 support first. The multiyear forming descending triangle testing lower support at the level 105.00. The pairs are making lower lows and lower highs. The bears are making the negative momentum in the market and hence making the lower swings. Currently, the pair is trading below the 104.721 level.
Technical Analysis: From the technical view of the market we can say that today’s range is between 105.00 -104.00. The pair is trading below all the minor and major EMA lines. Also, the Japanese yen came under pressure, pushing USD/JPY lower to 104.10. The resistance, however, has held intact, forcing the current pair back to 105.30. the daily chart suggests approaching oversold territory in the market. We can find the support 104.20 followed by 103.80 and resistance level is 105.40 followed by 106.00
The RSI is below the 50 levels which is favoring the bears. A bearish crossover on MACD indicator is showing the weakness in the pair.
Trade idea : Based on the chart and studies above we would suggest that go for sell at 104.71target is 104.10 and 103.00 level sl 105.30
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