Interesting trendline capping the rallies: 

Selling pressure remains very strong, an interesting trendline (descending) is still in evidence in the daily chart.

USDJPY price is steady on Asia session today, having earlier rejected at 20MA. The four-hour chart setting is negative. The price action was peaked ahead of the extreme dovish Fed meeting. The weak daily RSI and the bearish turnaround of the daily RVI should cap the rallied in the coming days. Against this backdrop, a lasting break of the 109.20 and 109.70 key barriers sounds tricky, and we rather fear a decline to support at 108.40, 108.00/107.70 levels.

Note that a break below 107.70 would underpin bearish momentum, paving the way for a decline to 107.20/107.00.

Read: January 2019 NFP preview

The neckline capping the rallies:

Before retraced to 108.50 on Jan 31st, the price traced out a near-term top near 109.90-110.00 in mid-Jan 2019 via the formation of a double top pattern.

For bulls, only a sustained trade above 110.00 would ease downside pressure. In this case, the price could rally towards 111.00 and 111.25.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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