USD/JPY is consolidating at 104.30 / 104.70 after yesterday's sharp sell-off. The currency pair has been trading in a downtrend for several months. The two descending trend lines and the 50-period moving average provide strong resistance and seem impenetrable at the moment.
The last attempt to approach the bearish trend line around 105.80 was on Monday, but the price reversed and yesterday saw a strong decline marked by a massive bearish candle. Should the downward pressure continue, the rate could drop to support levels around 104.00 - 103.90.
A close of the daily candle below this level may further increase the downside momentum, which would push the price to the next support levels around 103.00 and 101.20. In case of price growth, the previous support around 104.90 - 105.10 may cause some resistance. Then, the previous highs near the bearish trend line could be tested.