USD/JPY Price Analysis: Descending trend-channel points to further near-term weakness

USD/JPY pair’s attempted recovery move faltered near a short-term descending trend-channel.
The near-term technical set-up support prospects for a further decline towards the 106.00 mark.

Haresh Menghani FXStreet

The USD/JPY pair failed to capitalize on its attempted intraday recovery move and faced rejection near the top end of a short-term descending trend-channel formation on hourly charts.

The pair slipped into the negative territory, albeit lacked any strong follow-through selling and so far, has managed to hold well above six-week lows set in the previous session.

The pair's inability to register any meaningful recovery suggests that the near-term bearish pressure might still be far from being over amid sustained selling around the greenback.

The bearish outlook is reinforced by the fact that oscillators on the daily chart have been gaining negative traction and recovered from the oversold territory on the 1-hourly chart.

Hence, an eventual slide below the overnight low, around the 106.35 region, and a subsequent fall to the trend-channel support, near the 106.00 mark, now looks a distinct possibility.

On the flip side, recovery attempts might now confront some fresh supply near the trend-channel resistance, around the 106.70 region, and remained capped below the 107.00 level.

USD/JPY 1-hourly chart

Technical levels to watch

USD/JPY

Overview
Today last price	106.54
Today Daily Change	-0.13
Today Daily Change %	-0.12
Today daily open	106.67

Trends
Daily SMA20	107.86
Daily SMA50	108.13
Daily SMA100	108.79
Daily SMA200	108.31

Levels
Previous Daily High	106.9
Previous Daily Low	106.36
Previous Weekly High	108.04
Previous Weekly Low	107.28
Previous Monthly High	111.72
Previous Monthly Low	101.18
Daily Fibonacci 38.2%	106.56
Daily Fibonacci 61.8%	106.69
Daily Pivot Point S1	106.39
Daily Pivot Point S2	106.11
Daily Pivot Point S3	105.85
Daily Pivot Point R1	106.93
Daily Pivot Point R2	107.18
Daily Pivot Point R3	107.46

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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