USD/JPY: Chart: A Weekly Close Below 105.39/104.47 To Confirm A Descending Triangle Towards 100.72 – BofA

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USD/JPY has been under attack. What is the technical outlook for the pair?

Here is their view, courtesy of eFXdata:

Bank of America Global Research discusses USD/JPY technical outlook and flags a scope for a material move lower on a weekly close below 105.39/104.47.

“On a daily candle chart, yes the break of 106 mattered. However the two weekly closing lows of 105.39 are what matter more for the bigger picture. This was the same weekly closing value in March 2020 and in August 2019. In March 2018 it closed at 104.74. So there is still some support nearby and is probably why $/JPY hasnt sold off more from a technical view on the break of 106,” BofA notes. 

A descending triangle pattern (unconfirmed until a break happens) implies a break lower could follow with 100.72 and 94.85 possible,” BofA adds. 

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Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.