- USD/JPY drops for the fifth consecutive day as sellers battle 21-day SMA.
- Seven-week-old support line gains market attention as MACD turns red for the first time since early January.
- Fresh buying awaits daily closing beyond 105.80, monthly support adds to the downside filters.
Following its drop to the one-week low, USD/JPY wavers in a choppy range around 105.00 as Tokyo off disappoints momentum traders during early Tuesday. In doing so, the quote battles 21-day SMA while declining for the fifth day in a row.
Not only the 21-day SMA level of 105.00 but an ascending support line from January 06, near 104.80, also challenges the USD/JPY bears.
It should, however, be noted that the MACD turns red for the first time in nearly two months and hence keep the sellers hopeful of breaking 104.80 support.
Also acting as the key support could be an area including January 11 top and the monthly low near 104.40.
Meanwhile, the corrective pullback may aim for the early-month top surrounding 105.80 before trying to refresh the monthly top above the 106.00 threshold.
Overall, the USD/JPY bears are gradually firming up the grip and MACD signals add to the downside sentiment.
USD/JPY daily chart
Trend: Further weakness expected