USDJPY has found strong resistance at the falling trend line below the 104.00 psychological level, hovering around the 20- and 40-day simple moving averages (SMAs).
According to the technical indicators, the RSI is edging sideways near the neutral threshold of 50, while the MACD is flattening near the trigger and zero lines. Both are lacking to show a clear direction on price.
The short-run risk is looking neutral-to-bearish at the moment and another retest of the 102.60 support is likely. The next major barrier could come from the 41-month low of 101.15, reached on March 2020.
To the upside, a break of the descending trend line may attract much attention as the price jumps towards the 104.40 resistance. Positive momentum could further strengthen if the 23.6% Fibonacci retracement level of the down leg from 112.20 to 102.60 at 104.85 is breached as well, with the 105.70 restrictive zone likely appearing next in the radar.
In brief, USDJPY is trading neutral-to-negative in the short-term, while in the long-term view has been strongly bearish since March 2020.
