USD/JPY traded lower on Friday after it hit resistance near the 109.00 (R1) resistance barrier. During the early European morning Monday, the pair is testing again the support barrier of 107.65 (S1). The price structure on the 4-hour chart still suggests a short-term downtrend and as a result, I would expect a clear break below that hurdle to prompt extensions towards the 106.20 (S2) zone, defined by the low of the 21st of October 2014. Shifting my attention to our short-term oscillators, I see that the RSI fell back below its 30 line, while the MACD, already negative, has turned down again and crossed below its trigger line. These indicators detect downside speed and magnify the case for further declines, at least in the near term. As for the bigger picture, I still believe that the close below 116.00 has turned the broader trend to the downside. What is more, the dip below 111.00 (R3) signaled the downside exit of the sideways range the rate had been oscillating since the beginning of February, between that obstacle and the psychological area of 115.00. As a result, I would consider the longer-term downtrend to be back in force.