- USD / JPY tests critical support near 104.50 after the bearish crossover.
- The RSI on the 1-hour chart flirts with the oversold territory, allowing further declines.
- The 21-hour SMA at 104.69 offers immediate resistance.
USD / JPY is moving lower for the third day in a row on Monday, settling at a five-week lows near the 104.50 region, with the technical setup favoring bears in the near term.
The pair clings to the support of the one-week trend line, now at 104.48, attempting a tepid recovery at the start of the European session.
Despite the pause in the decline, risks remain skewed to the downside amid a bearish RSI and a bearish crossover detected on the 1 hour chart.
The 50 hour moving average has crossed below the 100 hour moving average, prompting a new sell from the 105.00 levels last Friday.
In the event of a breakout of the key support mentioned above, the bears will regain control and target levels below 104.
Meanwhile, any recovery attempt could face immediate resistance at the bearish 21-hour SMA at 104.69 while the USD / JPY currently flirts with the barrier of the 200-hour SMA at 104.60.
Higher up, the 50 hourly SMA barrier at 104.96 could be retested.
USD / JPY 1 hour chart
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
