The pair USD/JPY declined yesterday night reaching the same with September low with the depreciation of U.S. dollar when Donald Trump won the election. The pair recovered at 101.16 level after sell-off and rose to 103.50 level. Shortly after the upward momentum was overpowered by the selling pressure again. The traders had longer gains during sessions in North American time.
The price continued to move higher but broke at 104.00 to 104.50 level. It has preceded the 200-EMA 4-hours chart opening of New York whilst the strong resistance has hampered the rally of dollar. Other Moving Averages are in the downward direction in the same pace with the price.
The MACD histogram signals control of sellers as they are gaining strength towards the 102.50 level. The Overvalued area is almost reached in the RSI indicator with chances to move lower.
The Resistance level is posited at 103.50 level while the support level is at 103.00 level. The downward direction will continue if the U.S. dollars continues to depreciate with Sellers leading the price activity towards the 102.50 level. It is expected for a near-term technical correction at 104.00 level. A daily close below the physiological levels could further decline towards the 103.50 level.