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  • The pair continued with its struggle to gain any meaningful traction on Tuesday.
  • Set-up support prospects for some dip-buying interest, though warrants caution.

The USD/JPY pair failed to capitalize on the overnight attempted recovery move and met with some fresh supply on Tuesday – marking its fourth day of a negative move in the previous five.
Despite the downtick, the pair has still managed to hold its neck above the 50% Fibonacci level of the 112.40-104.45 downfall and a five-month-old descending trend-line resistance breakpoint.
Below the mentioned resistance-turned-support, near the 108.00 handle, the pair might turn vulnerable to accelerate the pullback further towards the 107.55 confluence region.
The latter comprises of 100-day SMA and 38.2% Fibo. level, which if broken decisively might negate any near-term bullish bias and set the stage for a further near-term depreciating move.
Meanwhile, technical indicators on hourly/daily charts have been drifting lower, though are yet to gain any significant negative momentum and warrant some caution before placing any aggressive bets.
Hence, it will be prudent to wait for a sustained breakthrough the said confluence support before traders again start positioning for the resumption of the pair’s prior well-established bearish trend.
On the flip side, any attempted positive move might continue to confront some fresh supply near the 109.00 handle (200-DMA), which if cleared now seems to pave the way for additional near-term gains.

USD/JPY daily chart