- USD/JPY drops for the second consecutive day, refreshes intraday low.
- Break of previous top, receding RSI from overbought area backs the bearish candlestick formation.
- 10-day SMA, ascending trend lines from January test sellers.
USD/JPY remains heavy for the second day in a row, currently down 0.12% while refreshing an intraday low near 105.69, during Thursday’s Asian session.
The pair jumped to the fresh high in five months the previous day before trimming the gains from 106.22. The resulted candlestick on the daily (D1) chart teases the sellers’ entry.
Also favoring the downside momentum could be the pair’s recent declines below the early-month top surrounding 105.75.
Hence, the USD/JPY bears aim for a 10-day SMA level of 105.23. Though, the quote’s further weakness will be challenged by two support lines stretched from January 27 and January 06, respectively around 104.90 and 104.65.
On the contrary, the 106.00 threshold and the latest high near 106.22 will test the short-term USD/JPY buyers. However, any further upside will eye for August 2020 top near 107.00.
USD/JPY daily chart
Trend: Further weakness expected
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