• USD/JPY’s daily chart shows a channel breakdown, a bearish pattern. 
• The pair appears set to test November lows.

USD/JPY is now trading in the red near 103.30, having faced rejection at 103.56 early Thursday.

The 26-pip decline is in line with the bearish view put forward by the daily chart channel breakdown. The pair fell more than 0.20% on Wednesday, confirming a downside break of a sideways channel represented by trendlines connecting Nov. 18 and Dec. 3 lows and Nov. 24 and Dec. 2 highs.

The breakdown is backed by a below-50 or bearish reading on the 14-day Relative Strength Index and downward trending 5- and 10-day Simple Moving Averages (SMA).

As such, the November low of 103.18 could soon come into play. A violation there would expose the March low of 101.18. A close above the 10-day SMA at 103.92.

DAILY CHART

Trend: Bearish

Technical levels