• A death cross formation, represented by the 50-and 200-EMA, signals a sheer downside ahead.
• An upbeat risk impulse has underpinned the Japanese yen bulls.
• The RSI (14) has shifted into the bearish range, which indicates more weakness ahead.

The USDJPY pair has turned sideways after a rebound move from around the psychological support of 140.00. The rebound move seems to lack confidence as the risk-on impulse is extremely solid after a sheer downside in short-term US inflationary pressures.

Meanwhile, the US dollar index (DXY) is hovering around its intraday low at 108.10 as the upside has been capped amid falling bets for the continuation of bigger rate hike announcements by the Federal Reserve (Fed).

On a four-hour scale, the asset has witnessed a short-term recovery after testing the horizontal support placed from September 22 low at 140.35. A death cross formation, represented by the 50-and 200-period Exponential Moving Averages (EMAs) at 146.00 indicates more weakness ahead.

The Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates that the downside momentum is active.

Should the asset drop below September 22 low at 140.35, the Japanese yen bulls will further drag the asset towards August 30 high at 139.08, followed by August 23 high at 137.71.

On the flip side, a decisive break above Wednesday’s high at 146.80 will drive the asset towards Monday’s high at 147.57 and October 31 high at 148.85.

USDJPY four-hour chart