Test 14-month minimums; Next support at 140.00

• USD/JPY is extending its losing streak in a descending channel, suggesting a confirmed bearish trend.
• The 14-day RSI momentum indicator suggests an oversold situation and potential for an upward correction soon.
• The pair is testing the 14-month low at 140.25, followed by the lower limit of the channel at 138.50.

USD/JPY continues to decline for a fifth consecutive day, trading around 140.30 during the Asian session on Monday. An analysis of the daily chart showed that the USD/JPY pair is moving down in a descending channel, indicating a confirmed bearish trend.

Additionally, the nine-day exponential moving average (EMA) is lower than the 21-day EMA, indicating a downward momentum in the asset price. However, the 14-day Relative Strength Index (RSI), a momentum indicator, is positioned below the 30 level, suggesting an oversold situation for the USD/JPY pair and potential for an upward correction soon.

In terms of support, USD/JPY is testing 140.25, which is the lowest level since July 2023, followed by the psychological level of 140.00. A successful break below this level could strengthen the bearish trend and put pressure on the pair to test the lower limit of the descending channel at the 138.50 level.

On the other hand, USD/JPY may first encounter a barrier at the nine-day EMA around 142.19, followed by the 21-day EMA at 144.04. A break above these EMAs could weaken bearish sentiment and push the pair to test the upper limit of the descending channel at the 145.50 level.

USD/JPY: Daily chart