On Tuesday USD/JPY continued decreasing with 55 pips. The currency couple depreciated from 78.25 to 77.69 yesterday, matching the negative money flow sentiment at almost -16%, closing the day at 77.74. This morning the dollar is trading quietly against the yen, with movements at the lower end of yesterday's range for now.
On the 1-hour chart new downward channel has formed, while on the 3-hour chart quotes broke down of the wide trading range. Break above yesterday's top and nearest resistance 78.25 would encourage further recovery of the dollar. Immediate support is yesterday's bottom at 77.69, and consistent break bellow it could strengthen the yen further down towards next target 76.56.
There are no major economic events for Japan today.
Quotes are moving below the crossing 20 and 50 EMA on the 1-hour chart, indicating bearish pressure. The value of the RSI indicator is negative and calm, MACD is negative and tranquil too, while CCI has thinly crossed down the 100 line on the 1-hour chart, giving over all light short signals.
Technical resistance levels: 78.25 79.10 80.00
Technical support levels: 77.69 76.56 75.40