The USD/JPY pair could extend its downside movement as long as it stays within the descending pitchfork’s body. Escaping from the major triangle pattern signalled that we may have a corrective phase. A larger downside movement could be activated by a valid breakdown below the 38.2% retracement level. Our USD/JPY forecast sees the pair trading at 112.87 level after failing to move back higher. The pressure is high in the short term, so further drop is natural after escaping from a major chart pattern. As you already know, the currency pair activated a corrective phase after the buyers showed exhaustion signs. Get FREE Forex Signals Now! 3 Free Forex Every Week – Full Technical Analysis Also, the US Dollar lost significant ground as the Dollar Index has turned to the downside. DXY registered only a false breakout above the 94.50 static resistance. On the other hand, JP225’s sell-off and the Japanese Yen Futures’ rally forced the Yen to appreciate. Fundamentally, the Yen received a helping hand from the Japanese Economy Watchers Sentiment which was reported at 55.5 points far above 48.6 points expected and compared to 42.1 in the previous reporting period. In addition, the Bank Lending registered a 0.9% growth versus 0.7% expected. Unfortunately, the Average Cash Earnings rose by 0.2% versus 0.6% expected, while the Current Account was reported at 0.76T below 0.85T. The USD/JPY pair is trading in the red as the US data failed to lift the price. The PPI registered a 0.6% growth in the last month as expected, while the Core PPI rose by 0.4% less compared to 0.5% forecasts.  If you are looking for the right MT4 broker to suit your needs, then read our guide today. USD/JPY Forecast: Price Technical Analysis – Down Channel! The pair drops within a descending pitchfork’s body. It has found support again on the median line (ml), but it has failed to close above the weekly S1 (112.97). The USD/JPY pair could drop deeper anytime as long as it stays below the descending pitchfork’s upper median line (uml). From the technical point of view, the 38.2% (112.56) is seen as the next downside target if the rate extends its drop. The price was expected to develop a downwards movement after making a breakdown from the triangle pattern. Its failure to make new higher highs signalled a corrective phase. A larger downside movement could be activated by a valid breakdown below the 38.2% level. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% 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 Daily Look share Read Next AUD/USD Price Looks Weak Around Monthly Lows Ahead of Jobs Report Saqib Iqbal 6 months The USD/JPY pair could extend its downside movement as long as it stays within the descending pitchfork’s body. Escaping from the major triangle pattern signalled that we may have a corrective phase. A larger downside movement could be activated by a valid breakdown below the 38.2% retracement level. Our USD/JPY forecast sees the pair trading at 112.87 level after failing to move back higher. The pressure is high in the short term, so further drop is natural after escaping from a major chart pattern. As you already know, the currency pair activated a corrective phase after the buyers showed exhaustion… 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.