USD/JPY - broken below weekly ascending support

After initially breaking the ascending 4H trend line, that was depicted during last weeks analysis, USD/JPY price spiralled down to retest the ascending weekly trend line, which supported price during the lows of 6th Nov. After a positive bounce from this support, price continued to fall for the remainder of the week, creating a new lower low on the daily timeframe. Price was eventually supported by the 103.20 level, but only just, as it the pair finished the week at 103.26. The pair now looks set to retest the lower boundary of the descending daily channel structure.

A new lower low on the daily timeframe indicates that the downtrend on USD/JPY is continuing. A break and close below the supporting weekly ascending trend line is not good for USD/JPY bulls as it now only leaves the support at 103.20 to rally price. This week, if the support at 103.20 is broken, it is likely that price will continue downwards towards the lower boundary of the descending daily channel structure that price has remained within since June.