The USD/JPY turned massively bearish during the outbreak of the coronavirus, losing more than 10 cents in a couple of weeks, form top to bottom. But we saw a strong reversal in the second half of March, and this pair claimed back almost all its losses from the coronavirus panic.

But, the pressure remained to the downside for the USD/JPY. The highs have been getting lower every time, which shows that sellers have had the upper hand. At the end of July, we saw another attempt from sellers, which sent this pair to lows around 104, where the price is heading now.

Since August, this pair has been trading within a range, but the sellers resumed the game this week, and the pressure has been totally to the downside since. Moving averages, such as the 20 SMA (gray) and the 50 SMA (yellow) have been doing a good job in pushing the price lower. They have been acting as a resistance indicator, so we will try to sell another pullback higher at these MAs on the H1 chart.