FX.co ★ USD/JPY analysis for May 16, 2023 - Breakout of the rising channel

Technical analysis:

USD/JPYhas been trading downside this morning and I found breakout of the rising channel in the background, which is good sign for the further downside movement.

Due to the breakout of the rising channel and the sideways range, I see potential for the further drop towards lower references.

Downside objectives are set at the price of 135.35 and 135.80

Stochastic oscillator is showing bearish divergences in the background, which is another sign for the downside movement.

Key resistance level is set at the price of 136.30