• USD/JPY takes offers to refresh intraday low, drops the most in a week.
• Descending RSI line, failures to cross immediate DMA favor sellers.
• Monthly support line adds to the downside filters, 131.30-35 appears a tough nut to crack for bulls.

USD/JPY remains on the back foot by refreshing intraday low to near 129.00, snapping three-day uptrend, while justifying the failure to cross the 10-DMA amid a softer RSI (14). That said, the yen pair prints the biggest daily loss in a week by the press time of Wednesday’s Asian session, down 0.25% around 129.10 by the press time.

While the 129.00 threshold acts as immediate support, the quote’s further downside will aim for an upward sloping trend line since late April, surrounding 127.65.

It’s worth noting that the monthly low around 127.50 and April 27 swing low near 126.95 could challenge USD/JPY bears past-127.65.

Meanwhile, a clear upside break of the 10-DMA, near 129.70 at the latest, could quickly attack the 130.00 threshold.

Though, a convergence of the previous support line from March and tops marked in April constitute strong resistance for the USD/JPY bulls to crack around 131.30-35.

Should the quote rises past 131.35, an upside rally to refresh the 20-year high near the 132.00 round figure becomes imminent.

USD/JPY: Daily chart

Trend: Further weakness expected