USD/JPY Price Analysis: Eyes descending triangle support

USD/JPY is trading in the red on Monday near 106.80.
Charts suggest scope for deeper losses toward key support at 106.10.

Omkar Godbole FXStreet Contributor

USD/JPY is currently trading at 106.80, representing a 0.10% drop on the day, having hit a high of 106.94 early Monday.

The pair has carved out a big descending triangle over the past 3.5-months. At press time, the lower end of the triangle is located at 106.10, and resistance is seen at 108.93.

Also, within the triangle, the pair has charted a lower high on the 100-day simple moving average (SMA) hurdle. The MACD histogram has crossed into a bearish territory below zero and the 14-day relative strength index is reporting bearish conditions with a below-50 print.

As such, one may expect the pair to continue losing ground toward the triangle support at 106.10.

The bearish bias would weaken if the pair prints a daily close above the descending trendline hurdle, currently located at 107.43.

Daily chart

Trend: Bearish

Technical levels

USD/JPY

Overview
Today last price	106.81
Today Daily Change	-0.12
Today Daily Change %	-0.11
Today daily open	106.93

Trends
Daily SMA20	107.23
Daily SMA50	107.42
Daily SMA100	107.68
Daily SMA200	108.4

Levels
Previous Daily High	107.26
Previous Daily Low	106.64
Previous Weekly High	107.79
Previous Weekly Low	106.64
Previous Monthly High	109.85
Previous Monthly Low	106.08
Daily Fibonacci 38.2%	106.88
Daily Fibonacci 61.8%	107.02
Daily Pivot Point S1	106.62
Daily Pivot Point S2	106.31
Daily Pivot Point S3	105.99
Daily Pivot Point R1	107.25
Daily Pivot Point R2	107.57
Daily Pivot Point R3	107.88

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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