USD/JPY technical analysis: Drops to trading range support amid reviving safe-haven demand

   •  A sudden move lower in the US equity futures and European stocks exerted some downward pressure on the USD/JPY pair, which finally broke down of its Asian session consolidation phase. 

   •  The pair struggled to build on the overnight bounce from three-month lows and also failed to find acceptance above 100-hour SMA, suggesting that the selling bias is still far from over.

The pair has now dropped to the lower end of its trading range held over the past 30-hours or so. With technical indicators on hourly charts holding in the bearish territory, a convincing breakthrough might turn the pair vulnerable to resume its recent/well-established bearish trend.

However, oscillators on the daily chart remained on the verge of near-term oversold territory and might turn out to be the only factor that might help limit further downside ahead of Wednesday’s important release of the US monthly retail sales data for the month of April. 

USD/JPY 1-hourly chart