USDJPY 109.14 key level to watch

The US dollar has broken to the downside against Japanese yen currency on Monday, as the risk-sensitive pair fell after a period of consolidation at elevated trading levels. A clear break below the 109.14 support level is likely to increase technical selling, which will also trigger a bearish head and shoulders pattern across the lower time frame charts. The MACD indicator on the four-hour time frame is also trending lower alongside price.

• The USDJPY pair is bearish while trading below the 109.14 level, key technical support is found at the 108.85 and 108.58 levels.

• If the USDJPY pair moves above the 109.60 level, buyers may test towards the 109.90 and 110.25 levels.