- USD/JPY’s uptick lacks follow-through, despite USD bounce.
- Healthy resistance levels to cap the gains in the near-term.
- Daily RSI remains bearish ahead of the US ISM data.
USD/JPY saw good two-way businesses earlier in the Asian session, now consolidating the volatile moves below 106.00, having faded a spike to near 106.45 region.
The near-term technical outlook for the pair remains bearish while the price ranges within a month-long falling channel, with the upside attempts capped by the downward-sloping 21-day Simple Moving Average (DMA) at 106.58.
The falling channel pattern could likely get confirmed only on a daily closing above the next resistance at 106.85 should the US ISM Manufacturing PMI better expectations. The next upside target lies at 107.17, the bearish 50-DMA.
Alternatively, the intraday low at 105.72 could limit the immediate downside, below which the 105.50 psychological barrier could be tested.
The daily Relative Strength Index (RSI) has turned flat below the 50 level, suggesting the sellers are likely to retain control in the coming days.
USD/JPY: Daily chart
USD/JPY: Additional levels