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  • USD/JPY is looking south with bearish lower highs and lower lows on the hourly chart.  
  • A break below the March 25 low of 109.70 may not happen immediately with intraday charts reporting oversold conditions.

USD/JPY could soon test the support at 109.70 (March 25 low), having created another bearish lower high at the former support-turned-resistance of 110.28 over the last 15 hours, as seen in the hourly chart.

The hourly chart relative strength index (RSI) of 33.00 is also biased bearish.  That said, a break below 109.70 may not happen today, as   4-hour chart RSI is reporting oversold conditions. The RSI on the daily chart has also dropped below 30.00 for the first time since early January.  

However, with the descending 50-hour moving average (MA), currently at 110.25, corrective rallies, if any, could be short-lived.

As of writing, the pair is trading at 109.89, having it a high of 110.15 earlier today.

Hourly chart

Trend: Bearish

Pivot points