Earlier in the American session, the USD/JPY pair is trading inside a bearish channel which has been developing since April 18th.
The Japanese Yen is trading around the 21 SMA. In case it breaks below the 6/8 Murray, it could fall towards the 200 EMA around 133.30 (200 EMA) and finally, towards the 5/8 Murray at 132.82.
In the case USD/JPY breaks above 134.70, it could reach strong resistance around 135.63 and finally, it could reach 7/8 Murray at 135.93.A sharp break below the 21 SMA (134.27) and a change in trend could lead towards the psychological level of 130. Since April 17, the Eagle indicator is showing a negative signal. USD/JPY is expected to reach the support level of 4/8 Murray at 131.25.
In the next few hours, USD/JPY falls below 133.10. Once it fell below 132.81, it could reach the 131.25 zone. The Yen could go down until it reaches the psychological level of 130. On the other hand, if the Yen exceeds the 135.00 level, we should avoid selling and it will reach the 135.93 level.
On the other hand, in case the Japanese Yen resumes its bullish cycle, we should expect a rejection around 7/8 Murray located at 135.23. This price action could be seen as a signal to sell.