As the early European morning approaches, USD/JPY is trading defensively as Japanese yen traders ease up following a turbulent previous week.
The negative mood surrounding the pair may be partially caused by a generalized US Dollar decline, which is being fueled by continuing risk flows and lower US Treasury bond yields.
The safe-haven US Dollar suffered as a result of reports that China intends to eliminate the requirements for arriving tourists to undergo quarantine along with further easing of restrictions.
The US data docket remains relatively low in the midst of a week that has been cut short by holidays, so the pair will draw cues from risk trends for any changes. Technically speaking, the USD/JPY is struggling to get traction above the 133.00-mark, endangering attempts at a comeback.
A persistent movement above the latter needed to carry the corrective upward toward the psychological level of 133.50.
The modestly optimistic 200DMA was cut from above by the negative 21-Daily Moving Average (DMA), validating a bear cross on Friday.
The possibility for a bearish movement is supported by the 14-day Relative Strength Index (RSI), which is hovering just above oversold territory.
The next downside target for sellers is Friday’s low at 132.15, below which the 131.64 low from December 22 can be retested.
