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.
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
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Trend: Bearish
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
