USD/JPY: Slump to accelerate below 103.00

USD/JPY keeps retreating from a weekly high of 105.91, now trading in the 103.60 price zone, battling with the 23.6% retracement of its latest daily collapse. Valeria Bednarik, a Chief Analyst at FXStreet, looks at the technical picture of the pair. 

Key quotes

“According to the USD/JPY 4-hour chart, the risk is skewed to the downside, as the pair is below a directionless 20 SMA, while technical indicators head firmly south within negative levels after correcting extreme readings.” 

“The daily low comes at 103.07, with several intraday lows in the 103.00 region these last days suggesting the slump will likely accelerate once below the figure.” 

“The pressure could ease if the pair recovers beyond 104.20, although bears will retain control as long as below 105.35.”