• USD/JPY struggles around two-week low after dropping the most since March 2020.
• 50-DMA, previous resistance line from March restrict short-term downside.
• October’s top acts as extra upside filter ahead of the latest multi-month peak.

USD/JPY remains pressured around a 13-day-low, reversing the early Asian rebound ahead of Monday’s European session.

The yen pair sellers cheered broad risk-off mood the previous day to break an ascending support line from late September, now resistance around 114.00.

The downside, however, witnesses a steady RSI line and the 50-DMA level near 113.15 as immediate challenges to tackle.

Even if the USD/JPY sellers break 113.15 DMA support, the resistance-turned-support line from March 2021, close to 112.80, will precede September’s peak of 112.00 to challenge the pair’s further weakness.

Alternatively, a clear upside break of the immediate resistance line, previous support around 114.10, will direct USD/JPY bulls towards the last month’s high surrounding 114.70.

Should the pair buyers keep reins past 114.40, the 115.00 threshold and the recent high near 115.50 can test the advances.

USD/JPY: Daily chart

Trend: Recovery moves expected