USD/JPY Technical Analysis: Pair has dived out of a rising channel

• The USD/JPY has dived out of the rising channel, as seen in the hourly chart, adding credence to yesterday's bearish outside day candle. As a result, the pair could drop to its 200-hour moving average (MA), currently located at 112.47.
• Interestingly, the ascending (bullish) 10-day MA is also located at 112.47. Should the pair defend that level, then a rally back to 113.00 could be in the offing before Friday's NY close.
• It is worth noting that a close below 112.63 would validate yesterday's bearish outside day and confirm a bullish-to-bearish trend change.

Hourly chart

Spot Rate: 112.70

Daily High: 112.90

Daily Low: 112.62

Trend: Bearish

Resistance

R1: 112.74 (5-day MA)

R2: 113.18 (July high)

R3: 113.39 (January high)

Support

S1: 112.47 (200-hour MA + 10-day MA)

S2: 112.15 (Aug. 1 high)

S3: 111.66 (Sept. 18 low)