USD/JPY may drop more after breaking below 114.40

Japanese yen became strong enough against the USD after the CPI report was released. Though the price index increased, it seemed not manageable, and the USD fell apart against all the major pairs.

USD/JPY is hovering nearly the trendline support zone. 114.40/35 is immediate and trendline support; after breaking below 114.40/35 USD/JPY may drop more nearly 113.32 price zone this week.

Today the USA labor market will release PPI and unemployment claims. I hope these reports are not going to help the USD. However, if these reports print positive USD/JPY, it can test the descending trendline area nearly at the 115.05/115.15 price zone.

But as long as USD/JPY is below the descending trendline, I mean 115.10 price zone, it still has a chance to drop more. So the sell order will be invalid if only USD?JPY breaks and is stable above the 115.10 price zone. Otherwise, we will continue our sell trade from nearly 115.00 or break below the 114.40 price zone.