USD/JPY Price Analysis: Reverses lower from 5-day MA

• USD/JPY is feeling the pull of gravity, possibly tracking losses in the US equity index futures. 
• The spot has breached key trendline support in favor of the bears. 

USD/JPY faced rejection at the 5-day average resistance at 107.66 in early Asia and is currently trading in the red at session lows near 107.30. 

The anti-risk yen is drawing bids, possibly tracking the decline in the US index futures. The S&P 500 futures are currently reporting a 0.6% drop. 

Also, the dollar side of the story has turned bearish this week due to the Federal Reserve's 50 basis point rate cut. 

Violates rising trendline

The spot is currently trading just below the hourly chart ascending trendline support at 107.36. 

A breakdown has validated the bearish or the below-50 reading on the 14-hour relative strength index and has opened the doors for a re-test of Tuesday's low of 106.85. 

The outlook would turn bullish if the spot finds acceptance above the overnight high of 107.74. That will likely bring in additional gains toward 108.00.

Daily chart

Trend: Bearish

Technical levels