USDJPY had been trending lower since its upward sloping channel broke to the downside in early March. Although the pair attempted a rebound, it is now on the retreat again after the congested region that includes the 50-day simple moving average (SMA) and the upper Boundary of the Ichimoku cloud rejected further advances.
The momentum indicators currently suggest that near-term risks are tilted to the downside. Specifically, the RSI has flatlined below its 50-neutral mark, while the stochastic oscillator is falling after posting a bearish cross.
If negative tendencies persist, the price could initially challenge the 130.40 support. Sliding beneath that floor, the pair may descend towards the March low of 129.63 before the 128.05 hurdle gets in the way. A break below the latter could set the stage for the 2023 bottom of 127.21.
Alternatively, should the positive momentum strengthen, immediate resistance could be met at the 50-day SMA, currently at 133.00. Piercing through that ceiling, the price might test the 135.05 resistance zone. If that barricade fails, the bulls could then target the 2023 high of 137.90.
Overall, USDJPY seems to be experiencing another round of weakness after its latest bounce faltered. Nevertheless, a lower low is required for the pair to extend its downtrend.
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