- USD/JPY attacks 105.00 while staying depressed near 4.5-month low.
- Bearish MACD, descending trend channel suggest the pair’s further weakness.
- June low limits immediate advances, 107.00 and 108.00 become the tough nuts to crack for the bulls.
USD/JPY wavers around 105.00 during the early Wednesday. In doing so, the pair takes rounds to the lowest levels since March 13 flashed the previous day. Though, bearish MACD and failures to witness pullback keep the sellers hopeful.
As a result, a clear break below 105.00 threshold could push the bears to target the support line of a falling channel stretched from May 29, at 104.46 now.
While the quote’s downside past-104.50 becomes less anticipated, 104.00 and March 10 low of 102.70 can lure the pessimists in a case of extended south-run.
Alternatively, an upside clearance of 106.00 will need validation from June month’s low around 106.10 to attack 50% Fibonacci retracement level of February-March declines, around 106.70.
It should, however, be noted that the quote’s rise beyond 106.70 will be challenged by the said channel’s resistance and 50-day EMA, near 107.00, as well as a confluence of 200-day EMA and 61.8% Fibonacci retracement close to 108.00.
USD/JPY daily chart