USD/JPY Price Analysis: Attempted recovery might still be seen as a selling opportunity

• USD/JPY attracts some dip-buying near the 106.95-90 horizontal support.
• Bearish technical set-ups support prospects for a further near-term slide.

The USD/JPY pair showed some resilience below the 107.00 round-figure mark and attracted some dip-buying near monthly lows set on April 1. The intraday bounce of around 55-60 pips reinforced strong horizontal support near the 106.95-90.

This along with a descending trend-line constitutes towards the formation of a descending triangle on short-term charts. The mentioned trend-line extends from late-March swing highs to the 111.65-70 region and should act as a key hurdle for bulls.

USD/JPY 4-hourly chart

Meanwhile, the recent leg down over the past one week or so has been along a descending trend-channel. The combination of bearish patterns clearly indicated that the recent bearish pressure surrounding the major might still be far from being over.

1-hourly chart

The negative outlook is further reinforced by the fact that technical indicators on the daily chart have just started drifting into the bearish territory. Moreover, oscillators on the 4-hourly chart have also recovered from slightly oversold territory.

Hence, any subsequent recovery towards the top end of the descending trend-channel, currently near the 107.80 region, might still be seen as a selling opportunity. This should eventually cap the upside near the triangle resistance, around the 108.00 mark.

Technical levels to watch