The pair extended losses for the second straight week. The monthly gains turned into losses. Today, ahead of the US home sales data, the yen is trading higher during the Asian session. The pair is trading below 20 DSMA after a month. Traders can remember our earlier alert at 125.50 when it was recommended selling with targets at 122.50.
The pair has been taking multiple support at 122.45 200 EMA. Bulls' last hope remains at 122.25. On the four-hour chart, the pair started forming lower high. But the lower lows are not found yet. Until the pair closes below 124.00, bears are at 121.50 or 121.00. Bulls must close above 124.00 as soon as they can to erase the sub-lows at 122.00. In case the US produces positive readings, bulls are likely to aim at 123.30 and 123.60. The pair is forming a descending triangle. A daily closure below 122.25 leads to accelerated selling.