The pair broke below the 1.3800 level. A sustained break of this level points to a further decline in the rate as indicated by the topping pattern. So far the pair has managed to stay above the 1.3750 level which is a rising trend line support area.

A move below 1.3740 indicates an initial move to 1.3680. Beyond this support is likely at 1.3640 and the 1.3600 area.

A pullup could occur, finding resistance by 1.3850, 1.3885-1.3890 and beyond that 1.3915.

The bias has shifted to short-term bearish for the pair, but a daily close below 1.3750 would provide more confirmation of this.

USD/JPY Pair Breaks Multiple Support Levels

Through trading yesterday and early today the pair plunged through multiple support levels. The pair currently sits in an old resistance (now support) area.

A drop below the lows at 96.50 points to continued deterioration. First target is 96.25 followed by 96.00 and 95.60.

Upside resistance is at 97.00, 97.20-97.30 and 97.60.

Analysis by: http://www.Forexpros.com - Written by Cory Mitchell

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