USDJPY is trading at 105.86; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 105.95 and then resume moving downwards to reach 104.25. Another signal is favor of further downtrend will be a rebound from the descending channel’s upside border.
However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 106.65. In this case, the pair may continue growing towards 107.25.