Overview: from the view of daliy chart USDJPY is showing its biggest drop since 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 113.86 support first. The multi year forming descending triangle testing lower support at the level 113.50. 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 113.50.
Technical Analysis: From the technical view of the market. The pair is trading above all the minor and major EMA lines . As, such Japanese yen came under pressure, pushing USD/JPY higher to 13.86. The resistance , however has held intact, forcing the current pair back to 114.00.the daily chart suggest approaching oversold territory in the market . The pair high is 113.80 and low is 113.80. We can find the support 113.50 followed by 113.00 and resistance level is 114.00 followed by 114.50
The RSI is below the 50 levels which is favoring the bears at 40.294 .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 113.80 target is 113.50 and 113.00 level sl 114.50.
