Daily chart: USDJPY fell deep below the support level of 97.59. Recently, it has touched the support level of 96.38. It is very likely that this pair will begin to form a higher low pattern to strengthen its bearish trend further. If the pair manages to break that level, it is expected to fall to the level of 94.53, very close to the 200-day moving average. On the other hand, if the pair fails to make a bullish rebound it is expected to rise to the level of 97.59. The MACD indicator remains in negative territory.
H4 chart: The pair broke the support level of 96.70 and now, it is forming a higher low pattern. It would be expected to fall to USDJPY support at the level of 95.81. On the other hand, it is very likely to achieve USDJPY break of resistance at 96.70 and up again to the level of 97.00. For now, the bearish trend in this pair still remains very strong, because this has gone below the 200-day moving average. It would be advisable to wait for this pair to finish form this bearish pattern. The MACD indicator is entering extreme oversold levels, but still in the negative territory, without showing further weakness of this pair.
H1 chart: In yesterday's session, the USDJPY managed to break the support at the level of 97.13 and it is very close to reaching the level of 96.02. If the pair manages to break that level, it is expected to fall to the level of 95.62. On the other hand, if the USDJPY manages to break the resistance at the level of 97.13, it will be expected to rise to the level of 97.64. For now, the USDJPY continues to consolidate in its bearish trend and it is very likely that this trend extends for many days due to the weakness of the pair. The MACD indicator is in extreme oversold territory and entering positive, so we must be cautious.
Fundamental outlook: For today's session, it will be published the Japanese Monetary Policy Statement, during the Asian session in Japan.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD/JPY pair breaks the bearish candlestick; the support level is at 96.02, take profit is at 95.62, and stop loss is at 96.45.
