Technical Analysis: USDJPY signals further losses below 109.00
USDJPY’s failures to regain above 200-SMA, coupled with monthly falling channel formation, favor bears targeting an ascending support line from March 05, around 108.60. However, the yen pair’s further weakness could be tested by the stated channel’s support line, near 108.30, a break of which will make the quote vulnerable to revisit the sub-107.00 area comprising the early March tops. It should be noted though that RSI conditions suggest the pair’s intermediate bounce off nearby supports before portraying a major downside.
On the contrary, a 200-SMA level of 109.05 guards the immediate upside of the pair, a break of which will highlight the channel’s resistance line near 109.35. In a case where the greenback buyers defy the bearish chart pattern with a clear break above 109.35, the pair’s rise towards the 110.00 threshold can’t be ruled out. Additionally, USDJPY upside beyond 110.00 will eye for the March-end top close to 110.70.