The USD/JPY pair renewed its intraday high near 131.70 on Tuesday, bouncing off the lowest levels in five weeks and poking a one-week-old resistance line.
The MACD signals suggest that the upside momentum is likely to return, while the RSI line indicates that the trend line resistance is still present.
The USD/JPY pair’s recent recovery from an ascending support line near 130.60 could add further strength to the bullish bias.
As a result, the USD/JPY pair is likely to cross the immediate trend line hurdle around 131.70, which could allow the buyers to aim for another upside hurdle, namely a downward-sloping resistance line from March 08, close to 133.10.
It is important to note that the USD/JPY bulls should remain cautious unless the quote remains below the 200-SMA level around 134.10.
A clear break of the stated support line could signal further downside for the USD/JPY, with multiple lows marked in recent months potentially providing support around 129.80, 128.00, and 127.20.