USD/JPY consolidates after sharp sell-off

The USD/JPY has been consolidating in the 104.30 / 104.70 range after yesterday’s sharp sell/off. The pair has been trading in a downtrend for several months now. From the upside two down sloping trendlines and the 50period moving average are providing strong resistance which seem to impenetrable now.
The last try to approach the bearish trendline around 105.80 was on Monday, but the price retreated and yesterday recorded a huge drop marked by a massive bearish candle. Should the downward pressure continue, the course could drop to the support area around 104.00 -103.90.

The closing of the daily candle below this level may increase the downward momentum further, pushing the price towards the next support levels around 103.00 and 101.20. In case of increasing price previous support might cause someresistance around 104.90 – 105.10, then previous highs could be tested near the bearish trendline.


Daily chart