• USD/JPY retreats from intraday high during three-day uptrend.
• Bearish candlestick, failure to cross the key SMA tease sellers.
• 200-SMA offers strong support, bulls have a bumpy road to the north.

USD/JPY justifies the recent bearish Doji as it pares intraday gains around 136.95 during early Wednesday morning in Europe. In doing so, the yen pair retreats from the 100-SMA amid a three-day rebound.

As the latest Doji and the 100-SMA challenge USD/JPY bulls, any upside momentum hinges on the quote’s ability to cross the 137.15 SMA hurdle. Even so, a two-week-old horizontal area near 137.90 could test the quote’s further advances.

It’s worth noting that a downward sloping resistance line from mid-July, at 138.50 by the press time, appears the last defense of the USD/JPY bears, a break of which could quickly propel the pair towards the recent multi-year high near 139.40.

Alternatively, pullback moves may aim for the 50% and the 61.8% Fibonacci retracements of June 23 to July 14 upside, respectively near 136.80 and 136.20.

Even if the quote drops past 136.20, the 200-SMA level of 136.15, could challenge the USD/JPY bears.

If the yen pair drops below 136.15, the previous weekly low near 135.55 should return to the charts.

USD/JPY: Four-hour chart

Trend: Pullback expected