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USDJPY breaks short-term sideways channel to the downside
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Technical signals are bearish
USDJPY turned the neutral outlook to bearish in the short-term timeframe, after the break below the narrow range of 148.90 – 149.70.
From a technical point, the short-term risks look to be negative. The MACD is heading south beneath its trigger and zero lines, while the RSI is pointing downwards in the bearish territory.
The question is whether the pair will continue to maintain its negative structure and move towards the 147.95 support level again. If the price were to demonstrate a clear step below that zone, it could be pushed back to the 147.13 bottom that was recorded on November 21.
In the event that the pair is able to overcome the 148.90 resistance level and the 20- and 50-simple moving averages (SMAs) around 149.10, traders may wait for a rally towards the 149.70 barrier and the flat 200-day SMA, which coincides with the 150.00 handle. Above that, the pair may rest near the 151.40 zone.
In conclusion, USDJPY is exhibiting a bearish trend today; however, traders must wait until they observe a definite penetration of 147.13 before they can anticipate further bearish swings in the medium-term.
