• USD/JPY takes offers to refresh intraday low, extends Friday’s U-turn from three-week high.
• Oversold RSI conditions highlight immediate support line as the key challenge for bears.
• Convergence of 100, 200 EMAs appears a tough nut to crack for the buyers.
• Bearish MACD signals, sustained trading below important moving averages signal further downside.

USD/JPY stands on slippery grounds as the Yen pair renews its intraday low near 131.35 during early Monday. In doing so, the major currency pair extends the previous day’s pullback from the three-week high, as well as a downside break of the 100 and 200-hour Exponential Moving Average (EMA).

It’s worth noting that the oversold conditions of the RSI (14) suggest a limited downside of the USD/JPY prices, which in turn highlights the one-week-old ascending support line, close to the 131.00 threshold at the latest.

In a case where the USD/JPY bears dominate past 131.00, the recently flashed multi-month low, marked in the last week around 129.50, could act as the last defense of the buyers before directing the pair towards May 2022 low near 126.35.

On the contrary, USD/JPY recovery remains elusive unless the pair remains below the convergence of the aforementioned EMAs around 132.45-50.

Even so, the 134.05-10 region and the monthly high surrounding 134.80 could challenge the USD/JPY bulls before giving them control.

However, the USD/JPY buyers need to remain cautious until the quote trades below the previous monthly low of around 138.20.

USD/JPY: Hourly chart

Trend: Limited downside expected