USD/JPY Price Analysis: Eyes descending triangle support

• USD/JPY is trading in the red on Monday near 106.80. 
• Charts suggest scope for deeper losses toward key support at 106.10.

USD/JPY is currently trading at 106.80, representing a 0.10% drop on the day, having hit a high of 106.94 early Monday. 

The pair has carved out a big descending triangle over the past 3.5-months. At press time, the lower end of the triangle is located at 106.10, and resistance is seen at 108.93. 

Also, within the triangle, the pair has charted a lower high on the 100-day simple moving average (SMA) hurdle. The MACD histogram has crossed into a bearish territory below zero and the 14-day relative strength index is reporting bearish conditions with a below-50 print. 

As such, one may expect the pair to continue losing ground toward the triangle support at 106.10. 

The bearish bias would weaken if the pair prints a daily close above the descending trendline hurdle, currently located at 107.43. 

Daily chart

Trend: Bearish

Technical levels