USD/JPY fell 0.63 percent yesterday to close below key support at 110.75. As of writing, the pair is trading at 110.63.
Acceptance below 110.75 validates the downside break of the ascending trendline connecting Jan. 4 and Jan. 1 lows and has opened the doors for a deeper drop toward 110.35 (Feb. 27 low).
Supporting that bearish case is the below 50 print on the 14-day relative strength index (RSI) and descending 5- and 10-day moving averages (MAs).
The bearish view would be invalidated above the 10-day MA, currently at 111.21.
Daily chart
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Trend: Bearish
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