USDJPY has been in a massive downtrend after peaking at the 32-year high of 151.94 in October. Even though the pair exhibited some signs of recovery, trading within an upward sloping channel in the short term, this bullish pattern was recently broken to the downside.
The momentum indicators currently suggest that the recent decline is slowly reversing as near-term risks are tilting to the upside. Specifically, the RSI has jumped above its 50-neutral mark, while the stochastic oscillator posted a bullish cross within the 20-oversold zone.
If the upside tendency persists and the price re-enters into its bullish setup, initial resistance could be encountered at the recent resistance of 137.90, which lies close to the 200-day simple moving average (SMA). Piercing through that zone, the price could ascend towards 139.38 or higher to test the November peak of 142.24. Should the latter barrier fail, further advances could cease at the 145.89 hurdle.
Alternatively, bearish actions might send the price to test the recent support of 134.00. Sliding beneath that floor, the bears could aim for the March low of 132.27 before the spotlight turns to 131.55. A break below the latter could pave the way for the 129.80 obstacle.
Overall, USDJPY seems to be regaining some ground despite its recent weakness. Therefore, the pair could realize more gains in the case that it jumps back into its upward sloping channel.