USDJPY has advanced considerably since roughly the beginning of the year, hitting a one-month high of 104.22 earlier today, but currently posting some losses.
Looking at momentum indicators, the RSI is lacking direction slightly below the overbought territory, suggesting that the market could retreat a bit in the very short-term. The MACD also supports this view as it is flattening above its trigger line in the positive area.
In the wake of negative pressures, the market could meet support at the red Tenkan-sen line around 103.90 before it heads lower to the 103.60 barrier, which overlaps with the 20-period simple moving average (SMA). A successful close below this level could see a retest of the inside swing high of 103.30 near the 40-period SMA and the Ichimoku cloud.
On the flip side, a move to the upside could see immediate resistance at the one-month peak of 104.22, but should the market increase positive momentum above this area, the 104.57 could be the next level in focus. A stronger barrier, though, could be found at the 104.76 resistance, taken from the high on December 2.
Turning to the medium-term picture, the market has been in a bearish mode since March 2020 and only a jump above 106.50 may shift the outlook to neutral.
