• USD/JPY holds onto previous week’s losses, stays pressured around intraday low of late.
  • MACD conditions signal slow grind to the north but 50-SMA, weekly resistance line challenge buyers.
  • Monthly support line restricts immediate downside, Fibonacci retracements add to the trading filters.

USD/JPY struggles to regain 115.00, down 0.13% intraday near 114.95 by the press time, despite the recent risk-on mood during Monday’s Asian session.

In doing so, the yen pair extends pullback from the 38.2% Fibonacci retracement (Fibo.) of January-February upside and the 100-SMA.

However, an upward sloping trend line from February 02, close to 114.80 at the latest, restricts the quote’s immediate declines.

Following that, the 50% and 61.8% Fibo. levels, respectively around 114.90 and 114.55, will challenge the USD/JPY bears before directing them to the monthly low of 114.15.

On the flip side, the aforementioned SMA and Fibonacci retracement confluence near 115.25 precede the previous support line from late January, around 115.40, challenges the short-term USD/JPY buyers.

However, a convergence of 50-SMA and a descending trend line from February 10, close to 115.45, will be a tough nut to crack for the bulls.

It’s worth mentioning that the MACD conditions have recently favored the bulls but confirmation is necessary.

USD/JPY: Four-hour chart

Trend: Further declines expected

This article was originally published by Fxstreet.com.Read the original article here.

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