USD/JPY Price Analysis: Hovers around 200 EMA, sees more downside below 121.30

Breakout of the descending triangle formation will be followed by volatility and volume expansion.
The 200 EMA is offering a cushion to the greenback bulls.
The RSI (14) in a 40.00-60.00 range has kept investors on the sidelines.

The USD/JPY pair is oscillating in a narrow range of 121.28-122.45 in the previous two trading sessions after recording a steep fall from March 25 high at 125.10. The asset is auctioning in a 10 pips range on Friday and is likely to witness a volatility expansion sooner.

On an hourly scale, USDJPY is sensing a cushion near the mighty 200-period Exponential Moving Average (EMA), which is trading at 121.60 at the press time. The major is auctioning in a descending triangle formation whose downward trending trendline is plotted from March 29 closing price at 123.21 while the horizontal line is placed from March 30 low at 121.31.

The 50 and 200-period EMAs have turned flat, which signals a consolidation going forward.

The Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which is likely to keep investors on the sidelines.

For further downside, yen bulls need to drag the asset below the establishment of the descending triangle formation at 121.28 decisively. This will expose the pair to more downside toward March 23 low and March 18 high at 120.59 and 119.40 respectively.

On the contrary, greenback bulls can obtain control if the asset advances above the 50 EMA at 122.00. This will drive the asset towards the March 29 closing price of 123.21, followed by the March 29 high at 124.31.