FX.co ★ USD/JPY moves towards 109.00 psychological level

USD/JPY drops after failing to stay higher above the uptrend line. You already know that the pair has moved sideways within a triangle. As I've mentioned in the previous analysis, a breakout from this pattern and a drop below the uptrend line may signal a downside movement.

The pair has rebounded and increased a little, but it has failed to stay above the uptrend line or to pass above the downtrend line signaling that sellers are still very strong. Then, it has dropped below the former low of 109.23 signaling a further decline. Technically, when the price drops under a former low and stays there, it signals more declines.

Trading conclusion

The current drop below 109.23 may signal a further drop towards 108.76 lower low.