USD/JPY Price Analysis: Further downside hinges on 131.30 break

• USD/JPY remains pressured for third consecutive day as sellers poke one-week-old support line.
• Bearish MACD signals, downbeat RSI signal further south-run.
• Any recovery remains elusive below 135.00 resistance confluence.

USD/JPY holds lower ground near the intraday bottom surrounding 131.30 as bears flirt with the short-term key support during early Tuesday. In doing so, the Yen pair prints a three-day downtrend while justifying the bearish MACD signals and the absence of an oversold RSI (14).

With this, the USD/JPY price is likely to remain weak and could break the one-week-old support line, near 131.30 by the press time, in the near term.

Following that, the 131.00 round figure and 130.00 psychological magnet may entertain the Yen pair sellers before directing them to the recent trough surrounding 129.50.

It’s worth noting that the RSI (14) could turn oversold when the USD/JPY hit 129.50, which in turn may trigger a corrective bounce, if not then the 61.8% Fibonacci Expansion (FE) of the pair’s moves between November 30, 2022, and January 03, 2023, close to 128.30, will be in focus.

On the contrary, recovery moves may initially aim for the previous day’s peak of 132.65 before heading towards the late December 2022 swing high surrounding 134.50.

However, the 200-SMA and a downward-sloping resistance line from November 30, 2022, close to 135.00 by the press time, will be a tough nut to crack for the USD/JPY bulls to retake control.

USD/JPY: Four-hour chart

Trend: Further downside expected