USDJPY extends pullback from a four-year high, recently failed to keep the bounce off 113.50, amid downbeat MACD and RSI. That said, the yen pair’s further downside will poke the 100-DMA level of 113.25 but the previous resistance line from March 2021, around 112.80, could challenge the bears afterward. It should be noted, however, that a clear downside break of 112.80, won’t hesitate to direct the pair sellers towards tops marked in early October and May 2021, respectively around 112.00 and 111.65.
Meanwhile, recovery moves can initially aim for the three-week-old resistance line near 114.50 before challenging the 20-DMA level surrounding 114.85. If USDJPY prices rise past 114.85, November 2021 peak near 115.50 will be in focus as it holds the key to the pair’s further advances targeting a fresh high of 2022, currently around 116.35.
To sum up, USDJPY is expected to witness further declines but the bullish trend remains intact until the quote stays beyond 112.80.