Early on Thursday, the USD/JPY is retreating into the danger zone beneath the 132.00 mark, reversing a dead cat bounce from the previous day.
The currency pair is suffering as a result of the US dollar’s recent reversal of fortunes and rising Treasury bond yields.
Technically speaking, the USD/JPY is consolidating down while awaiting a new trigger for another leg lower.
The somewhat optimistic 200DMA from above is about to be cut by the negative 21-Daily Moving Average (DMA). To expedite control, bears will require a bull cross confirmation.
There may yet be more room for a slide since the 14-day Relative Strength Index (RSI) is now hovering just above the oversold region.
At 131.00, a round number, immediate assistance is available. After that, sellers will aim for the four-month low 130.57. On the other hand, all rehabilitation efforts must consistently gain acceptance over the 132.00 barrier.
