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  • The USD/JPY pair on Monday failed to capitalize on its goodish intraday recovery from multi-year lows and once again failed to make it through 100-period EMA on the 4-hourly chart.
  • The mentioned barrier coincides with 38.2% Fibo. level of the 109.32-104.45 recent leg down, which if cleared should pave the way for further near-term recovery for the major.

Meanwhile, technical indicators on hourly charts have been struggling to gain positive traction and remained in the negative territory on the daily chart, which seemed to be one of the key factors capping gains amid reviving safe-haven demand for the Japanese Yen.
The downside, however, remained cushioned near 23.6% Fibo. level – around mid-105.00s, below which the pair might turn vulnerable to slide further towards 105.30-25 intermediate support en-route the key 105.00 psychological mark and multi-year lows – around the 104.50-45 region.
On the flip side, a sustained move beyond the 106.30-40 confluence resistance might now set the stage for a move beyond the 106.70-75 supply zone towards reclaiming the 107.00 round figure mark ahead of the next major hurdle near the 107.30-35 region.

USD/JPY 4-hourly chart