USD/JPY Price Analysis: Justifies Tuesday’s bearish Doji to drop towards 114.00

• USD/JPY drops the most in a week following bearish candlestick, refreshes intraday low.
• 50-DMA offers immediate support ahead of an ascending trend line from October.
• Bearish MACD, pullback from 20-DMA also favors sellers.

USD/JPY stands on the slippery grounds to refresh intraday low around 114.35, down 0.25% on a day heading into Wednesday’s European session.

In doing so, the yen pair justifies the previous day’s bearish candlestick formation, as well as a pullback from 20-DMA, amid a downbeat MACD histogram.

It’s worth noting, however, that the 50-DMA level near 114.30 restricts the pair’s immediate declines ahead of the key support line from near 114.00.

During the quote’s weakness past 114.00, the 100-DMA level of 113.15 and December’s low of 112.56 will be in focus.

Alternatively, a 20-DMA level of 115.00 limits the quote’s immediate upside ahead of November’s high near 115.55 and the monthly peak of 116.35.

Overall, USD/JPY buyers are at the test near the key support line.

USD/JPY: Daily chart

Trend: Further weakness expected