USD/JPY Price Analysis: Sellers attack 10-DMA inside six-week-old ascending triangle

• USD/JPY remains on the back foot around intraday low, fades the previous day’s bounce off triangle’s support.
• Receding bullish bias of MACD, bearish chart pattern keeps sellers hopeful.
• 50-DMA adds to the downside filters, double tops around 116.35 become the key resistance.

USD/JPY portrays the market’s risk-off mood while staying pressured around intraday low, close to 115.30 ahead of Tuesday’s European session.

In doing so, the risk barometer pair attacks a 100-DMA level of 115.30 inside an ascending triangle bearish chart formation established since January 04.

Also keeping the pair bears hopeful are the recently retreating MACD line and the pair’s failures to keep the previous day’s bounce off the stated triangle’s support.

That said, the pair sellers currently eyes the triangle’s support line of 115.10, a break of which will confirm the bearish chart pattern and direct USD/JPY sellers towards the late January’s swing low of 113.46. However, the 115.00 threshold may act as a validation point.

It’s worth noting that the pair’s declines past 113.45 will make it vulnerable to aim for June 2021 peak surrounding 111.65.

Meanwhile, recovery moves may initially target the 116.00 round figure but remain elusive until crossing the latest double tops near 116.35.

Following that, a run-up towards the 120.00 psychological magnet becomes expected. During the rise, the December 2016 peak of 118.66 may act as an intermediate halt.

USD/JPY: Daily chart

Trend: Further weakness expected