USD/JPY Price Analysis: Bulls trying to defend a multi-day old ascending trend-line line support

• USD/JPY met with some supply on Tuesday and retreated from one-month tops.
• A sustained break below 110.00 mark needed to confirm near-term bearish bias.

The USD/JPY pair failed to capitalize on the previous day's strong intraday positive move of around 200 pips, to fresh one-month tops, and witnessed some fresh selling during the Asian session on Tuesday. The downtick dragged the pair back closer to ascending trend-line support.

The mentioned region nears the lower end of over two-week-old ascending trend-channel, which if broken might be seen as a key trigger for bearish traders and prompt some aggressive selling. The pair then might accelerate the fall further towards an intermediate support near mid-109.00s.

Meanwhile, technical indicators on the 1-hourly chart have been drifting lower in the bearish territory and support prospects for a further intraday downfall. However, oscillators on 4-hourly/daily chart maintained their bullish bias and warrant some caution before placing aggressive bearish bets.

Hence, it will be prudent to wait for a sustained break through the key 110.00 psychological mark before confirming that the pair might have already topped out in the near-term and positioning for any further near-term depreciating move.

On the flip side, momentum above the 110.70 horizontal resistance will reinforce the trend-line support and lift the pair back towards the 111.00 mark. Some follow-through buying now seems to set the stage for a move beyond mid-111.00s, towards reclaiming the 112.00 mark en-route February monthly tops near the 112.20-25 region.

USD/JPY 1-hourly chart

Technical levels to watch