FX.co ★ USD/JPY analysis for May 19, 2023 - Breakout of the rising channel and potential for the further drop

Technical analysis:

USD/JPY has been trading upside yesterday but I found breakout of the rising channel this morning, which is very good sign for the further downisde movement.

Due to short-term extreme bull condition and the breakout of the rising channel, I see potential for the downside movement towards lower references.

Downside objectives are set at the price of 137.70 and 136.50

Stochastic oscillator is showing fresh bear cross and overbought condition, which is another good sign for further downside movement.

Resistance level is set at the price of 138.70