- USD/JPY bounces off intraday low, snaps four-day uptrend.
- Easing RSI favor further consolidation of gains but 100-day SMA offers strong support.
Despite the recent bounce off 104.85 to 104.90, USD/JPY prints 0.07% intraday losses, the first negative in five days, during Tuesday’s Asian trading. In doing so, the quote steps back from the highest since mid-November amid easing RSI from nearly overbought conditions.
Considering the RSI situations and the market’s latest risk-off mood, USD/JPY is likely to extend the latest pullback towards the 104.40 support confluence including 100-day SMA and the early January high.
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However, an ascending trend line from January 06, at 103.86 now, will offer a tough nut to crack for USD/JPY sellers.
Meanwhile, buyers are likely to take fresh positions only if the quote crosses the latest high of 105.03.
Following that 38.2% Fibonacci retracement of June 2020 to January 2021 downside, around 105.35 and 200-day SMA near 105.60 will be the key to watch.
Overall, USD/JPY remains strong but RSI conditions favor retracement.
USD/JPY daily chart
Trend: Pullback expected
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