• USD/JPY rebounds from intraday low but stays on the bear’s radar during three-day downtrend.
• Clear downside break of five-week-old trend line, bearish oscillators favor sellers.
• Fortnight-long resistance line challenges buyers on their way to 140.00.

USD/JPY remains on the back foot despite the latest U-turn from the intraday low, around 135.00 during Monday’s Asian session. In doing so, the yen pair recovers from the 20-DMA support amid a sluggish session.

However, the quote’s sustained trading below the support-turned-resistance line from late May, around 135.45, joins bearish MACD signals and the RSI (14) pullback from the overbought territory to keep sellers hopeful.

That said, the fresh downside needs confirmation from the 20-DMA level surrounding 134.90.

Following that, the mid-June swing low and the 50-DMA could lure the USD/JPY bears around 131.50 and 131.40 in that order.

Also acting as the downside filter is the April 2022 high surrounding 131.25, a break of which could easily direct USD/JPY towards the 130.00 psychological magnet.

On the contrary, recovery remains elusive until crosses the 135.45 resistance line, previous support, a break of which could direct the pair buyers towards an upward sloping resistance line from June 21, around 137.10 by the press time.

Should the USD/JPY manage to remain firmer past 137.10, the odds of witnessing a run-up towards the 140.00 round-figure can’t be ruled out.

USD/JPY: Daily chart

Trend: Further weakness expected