USDJPY has been trending lower on its 4-hour chart, moving below a descending trend line connecting the latest highs of price action. The pair is currently stalling between the 50% and 61.8% Fibonacci retracement levels, which keep further gains in check.

In addition, price is also finding resistance around the moving averages, which typically hold as dynamic inflection points. The 100 SMA is below the 200 SMA so the path of least resistance is to the downside and the downtrend could carry on, taking USDJPY to the previous lows around 105.65.

Stochastic is on the move down, indicating that sellers are in control of price action. RSI is also heading south so price could follow suit. A higher pullback, however, could last until the 109.75-110.00 level, which is closer to the falling trend line.

Data from the US econom

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