“¢ After showing some resilience near 100-hour SMA, the USD/JPY pair finally broke down of its European session consolidation phase and refreshed session lows in the last hour.
“¢ Deteriorating risk sentiment continued benefitting the Japanese Yen’s relative safe-haven status and has been one of the key factors exerting fresh downward pressure on Friday.
“¢ The mentioned moving average coincides with a descending trend-line resistance break-point, cleared on Thursday and might now be seen as a key trigger for bearish traders.
Meanwhile, oscillators on the daily chart have already recovered from oversold conditions and again started gaining negative momentum on hourly charts, suggesting that the corrective bounce might have already run out of the steam.
Moreover, the fact that the pair failed to capitalize on this week’s recovery move from three-month lows and a subsequent rejection near the key 110.00 psychological mark on Friday indicates that the recent bearish slide might still be far from over.
Hence, a follow-through weakness, amid absent relevant market moving economic releases from the US, looks a distinct possibility. The 109.30-25 region now becomes immediate downside, target before the pair aim towards retest the 109.00 handle.
USD/JPY 1-hourly chart
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