USD/JPY 1H Chart: Channel Down

If we connect the most prominent valleys and peaks of USD/JPY hourly chart that have appeared since Sep 6 with straight lines, we would get a bearish channel. And even though the parallel trend-lines that are supposedly guiding the currency pair lower have not yet been confirmed on many occasions, there is a good chance this corridor will prove to be important in the future.

Meanwhile, the bias towards USD/JPY is strongly bearish. Apart from the numerous ‘sell' signals on hourly, four-hour and daily charts, the price fluctuates beneath the 200-hour SMA, a fact that means existence of additional downward pressure on the U.S. Dollar relative to the Yen.