Nathan BatchelorThe dollar continued its recent downside breakout against the yen last week, with the pair falling to its weakest trading level in more than six weeks.
USD/JPY analysis indicates that further losses towards 101 appear possible if the 104 support level is breached.
USD/JPY medium-term price trend
The USD/JPY posted five straight days of losses last week, as the pair entered its worst losing streak since late July this year.
USD/JPY technical analysis shows that a bearish triangle pattern breakout is projecting further losses ahead. According to the size of the pattern, the USD/JPY pair could target below the 100 level over the medium term.
Traders may sell any rallies back towards either the 105 or 105.50 areas this week in expectation of further losses.
Key downside targets below the 104 support regions are currently located at the 103 and 101 levels.
USD/JPY short-term price trend
USD/JPY technical analysis highlights that the pair has a bearish short-term bias while the price trades under 105.80.
The four-hour time frame shows that a bearish head-and-shoulders pattern has been triggered, following the recent breakout below the 105.30 level.
Technical analysis highlights that a larger bearish pattern will form if the price reaches 104.18. According to the size of the potential head-and-shoulders pattern, the USD/JPY pair could fall towards the 101 area.
USD/JPY technical summary
USD/JPY analysis shows that a major bearish breakout is now underway. The 101 level is seen as a short-term target, while the pair could fall below 100 over the medium term.
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