• USD/JPY takes offers to refresh intraday low, snaps four-day uptrend inside bearish chart formation.
• 100-HMA joins sluggish oscillators to raise barriers for seller’s entry around 134.50.
• Recovery remains elusive below 135.35; bears have a bumpy road to travel.

USD/JPY renews intraday low near 134.70 during early Thursday as it prints the first daily loss in five heading into the European session. In doing so, the Yen pair remains depressed inside a one-week-old rising wedge bearish chart formation.

That said, the latest RSI (14) retreat and multiple failures to remain firmer past 135.00 tease the USD/JPY sellers. However, sluggish RSI and MACD suggest low support for the bears.

It’s worth noting that the 100-Hour Moving Average (HMA) joins the support line of the stated wedge to highlight the 134.50 as the short-term key support.

Following that, the 200-HMA and a fortnight-long horizontal line, respectively near 133.80 and 132.90, could challenge the USD/JPY downside.

In a case where the USD/JPY prices remain weak past 132.90, an ascending support line from February 02, close to 132.35 at the latest, appears as the last defense of the buyers.

On the flip side, recovery moves need to stay successfully beyond the 135.00 round figure to convince USD/JPY buyers.

Even so, the aforementioned wedge’s top line could challenge the upside momentum near 135.35 before giving control to the bulls.

Overall, USD/JPY is likely to decline further but the downside room appears limited.

USD/JPY: Hourly chart

Trend: Limited downside expected