The USD/JPY keeps a good support at the 109.00 level

The USD/JPY has tried to bounce from the 109.00 level, but it goes back to that zone which it has not been able to break to the downside either as shown on the daily chart. A few weeks ago we identified the cross of the 55 day EMA below the 200 day EMA, which is known as a “death cross” and it has bearish implications in the mid-term. The angle of inclination of the 55 day EMA (purple line) is showing us that the bearish trend is still strong and the price of the USD/JPY may try to break below the 109.00 level, especially if it continues hammering that same zone. The more the price visits the 109.00 level, the higher the probabilities of seeing a bearish breakdown. Therefore, we must be attentive to a possible breakdown of the 109.00 zone, because it could provide us with an opportunity to go short on the pair. To the upside, the 111.00 level could act as resistance, but above the 111.00 level the next resistance could be the 113.00 zone.