USD/JPY closes the hour sub 100-HMA for the first time in almost a week.
The spot rate rebounds off key support whilst within a symmetrical triangle.
Investors will now look towards risk sentiment on Wall Street and dollar moves for fresh catalysts.
USD/JPY trades towards the lower end of 106 , after rebounding from a dip to the ascending trend line support at 106.20.
Despite the rebound, further declines still look likely, as the price closed the hour below the 100-hourly Simple Moving Average (HMA). The last time this happened was September 2.
An hourly close below the ascending trend line support confirms the break-down of the symmetrical triangle, which could open the door to 106.08 (200-HMA)
Despite advancing, the hourly 14-day Relative Strength Index (RSI) still remains below the mid-line, so in bearish territory.
On the flip-side the confluence at 106.27 of the 21 and 50-HMAs could cap gains.
Looking further ahead 106.31 (daily high) will draw into focus. A meaningful move above 106.50 could negate the current bearish trend.
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