USD/JPY technical analysis: 4-day long support-line caps immediate declines

• USD/JPY keeps trading above four-day-old trend-line.
• 4H 100MA, two-week-old resistance-line restrict near-term advances.

Despite pulling back from 106.50, USD/JPY remains above immediate support-line while trading near 106.35 during early Monday.

While 106.50 acts as immediate upside resistance, buyers will be more concerned about 106.83/85 confluence including two-week long descending trend-line and 100-bar moving average on the four-hour chart (4H 100MA).

In a case prices rally beyond 106.85, 50% Fibonacci retracement of current month declines, at 107.20, can question bulls ahead of pushing them towards 107.60 and 108.00 resistances.

Alternatively, a downside break of 106.25 can quickly fetch the quote to 105.50 whereas 105.00 and January month low near 104.75 will be on sellers’ radar next.

USD/JPY 4-hour chart

Trend: Bullish