- USD/JPY stays below the monthly support-turned-resistance horizontal line.
- Weak RSI conditions question the bears waiting for entry below 50% Fibonacci retracement.
- A three-week-old falling trend line adds to the upside barrier.
Having failed to cross the monthly support-turned-resistance, USD/JPY drops to 106.60, down 0.10% on a day, ahead of Thursday’s European session.
Even if the pair’s failure to cross the immediate resistance line, previous support, portrays its weakness, downbeat RSI restricts the bears’ entry.
As a result, a sustained break below 50% Fibonacci retracement level of the March month upside, at 106.45, becomes necessary to witness further downside of the pair.
In doing so, 61.8% Fibonacci retracement and March 16 low near 105.15 can appear on the sellers’ radar.
Meanwhile, an upside clearance of 106.90/95 support-turned-resistance can trigger fresh recoveries towards 107.40.
Though, a descending trend line since April 06, 2020, around 107.55, will be the key during the further pullback moves.
USD/JPY four-hour chart
Trend: Bearish
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