The USD/JPY pair could drop anytime if it stays under the downtrend line. Activating the flag pattern may announce a new downside movement. Yen Futures’ drop forced the Yen to depreciate. The USD/JPY price rallied in the short term, trying to recover after its recent strong bearish momentum. The pair is trading at 134.01, below today’s high of 134.40. –Are you interested to learn more about forex signals? Check our detailed guide- The USD dragged the price higher even if the Dollar Index remained sluggish. Still, the price rebounded as the Japanese Yen Futures’ sell-off weakened the Yen. Fundamentally, the Japanese SPPI reported a 1.7% growth on Monday, and the Unemployment Rate and BOJ Core CPI came in better than expected yesterday. In contrast, Housing Starts and Retail Sales indicators reported worse than expected data. The greenback received a helping hand from the Goods Trade Balance, HPI, and the S&P/CS Composite-20 HPI yesterday. The economic indicators reported positive data. Today, the BoJ Prelim Industrial Production reported a 0.1% drop versus the 0.2% drop expected after the 3.2% drop in the previous reporting period. The US Pending Home Sales are expected to register a 0.9% drop in the last month, while the Richmond Index could remain deep in the negative territory at -10 points. Tomorrow, the US Unemployment Claims indicator is an important event that could increase the price. Get FREE Forex Signals Now! USD/JPY price technical analysis: Flag formation From a technical point of view, the USD/JPY pair rebounded. It was almost to hit the descending trendline. This represents a dynamic resistance, so the price could drop again if it stays under this obstacle. –Are you interested to learn more about low spread forex brokers? Check our detailed guide- Actually, the price action developed a bearish pattern. The flag formation could result in a new leg down. Still, it’s premature to talk about this scenario if the price is above the ascending trendline. The 133.61 and the weekly pivot point of 133.60 represent support levels. The median line (ML) of the ascending pitchfork and the channel’s upside line also represents upside obstacles. The uptrend line is seen as critical support. A valid breakdown below this line, activating the flag pattern, could announce a new sell-off. The lower median line (LML) could represent a potential downside target. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Olimpiu Tuns Olimpiu Tuns Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms. View All Post By Olimpiu Tuns Majors share Read Next EUR/USD Forecast: Buyers Shying amid COVID-led Pessimism Saqib Iqbal 4 weeks The USD/JPY pair could drop anytime if it stays under the downtrend line. Activating the flag pattern may announce a new downside movement. Yen Futures' drop forced the Yen to depreciate. The USD/JPY price rallied in the short term, trying to recover after its recent strong bearish momentum. The pair is trading at 134.01, below today's high of 134.40. –Are you interested to learn more about forex signals? Check our detailed guide- The USD dragged the price higher even if the Dollar Index remained sluggish. Still, the price rebounded as the Japanese Yen Futures' sell-off weakened the Yen. Fundamentally, the Japanese… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.