Having witnessed repeated pullbacks from four-week-old descending trend-line resistance, the USD/JPY pair is trading around 111.40 ahead of European open on Thursday.
Not only failure to surpass a month-old resistance-line but the bearish divergence of the 14-bar relative strength index (RSI) also signals the pair’s weakness.
As a result, chances of the quote’s another dip towards 111.20 and then to 110.90 can’t be denied. Additionally, 110.60 and 110.30 could please sellers past-111.20.
However, an ascending support-line stretched since January-end could confine the pair’s further downside near 110.00, if not then 109.70 and 109.10 might becomes bears’ favorites.
Alternatively, 111.50/55 and an upward sloping resistance-line connecting highs marked since March 21, at 111.65, could challenge buyers.
Given the price rally beyond 111.65, 111.90, 112.00 and 112.15 are likely consecutive halts that the bulls can avail ahead of aiming 112.30 and 112.80 resistances.