The USD/JPY pair is recovering from its intraday low and weekly bottom, but remains mildly offered near 134.20, printing a two-day losing streak.
The failure to cross an 11-week-old horizontal resistance area, coupled with downbeat US inflation numbers, triggered a U-turn from the weekly high on Wednesday.
The MACD indicator flashes bearish signals, making the USD/JPY rebound appear elusive. The bulls need to cross the aforementioned horizontal resistance area surrounding 135.30-40 to retake control.
If the bulls succeed in crossing the resistance level, a run-up towards 136.50-60 and the 137.00 round figure can be expected. However, the double tops around 137.80-90 may present a challenge for buyers.
On the other hand, a daily closing below 133.90 may quickly drag the Yen pair to a 133.00 round figure before directing it to April’s low of around 130.63. In a case where the USD/JPY bears remain dominant past 130.63, the 130.00 round figure and March’s bottom of near 129.65 should be their focus.
In summary, the USD/JPY pair struggles to break the resistance level, and the MACD indicator signals bearish momentum. The bulls need to cross the resistance level to take control, while the bears may target lower levels if they remain dominant.
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