USD/JPY technical analysis: more downside expected below 107.30 level
15:22, 22 July 2020
The US dollar appears increasingly bearish against the Japanese yen, as the pair struggles around the 107 area.
USD/JPY analysis shows that the pair has staged a bearish breakout from a large triangle pattern on the daily time frame.
USD/JPY medium-term price trend
The USD/JPY still could start to fall back towards the 106 support level, as traders continue to sell any rallies above 107.
USD/JPY technical analysis shows that the USD/JPY pair remains vulnerable to losses towards the 106 level while THE price trades below 107.30.
The daily time frame highlights that the pair has fallen under a triangle pattern, between the 107.30 and 108.40 levels.
Failure to break above 107.30 could see the USD/JPY pair slipping back towards the 106 level.
Key technical support below the 106 level is located around the 105.50 and 104.80 levels.
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USD/JPY short-term price trend
Short-term USD/JPY technical analysis highlights that the pair has a bearish bias while the price trades below the 107.50 level.
A bearish head-and-shoulders pattern has formed across the lower time frames, with a sizable downside potential.
The neckline of the bearish head-and-shoulders pattern is located around the 106.80 support level.
Weakness under the 106.80 level is likely to trigger technical selling towards the 106 support region, and possibly the 105.50 level.
USD/JPY technical summary
USD/JPY analysis highlights that the pair appears bearish over the short and medium-term horizon. Weakness under the 106.80 level should trigger heavy technical selling.
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