VOT Research Desk
As we move into Thursday’s European session, USD/JPY holds onto modest gains for the first day in three.
The yen pair illustrates recovery from a two-week-old ascending trend line by doing so, but also probing a resistance area made up of several levels established since early December.
To persuade the pair’s buyers, a distinct upward breach of the 135.80-136.00 region is required. The 100-SMA level near 137.15, however, may make it difficult for the Yen pair to recover.
A move towards the late November swing high near 139.90 and subsequently to the 140.00 round figure can’t be ruled out if the USD/JPY bulls are able to maintain control past 137.15. 
Instead, in order to be remembered, pullback moves must breach the aforementioned support line, preferably near 134.60.the bearish USD/JPY.
After that, a decline into the monthly low close to 133.60 seems likely. The south-run could aim for the August month’s low near 130.40 if the USD/JPY pair continues to trend lower after reaching 133.60.
