• USD/JPY tests the immediate support at the nine-day EMA of 154.85.
• The 14-day Relative Strength Index near 46 suggests neutral conditions and stabilizing momentum.
• The primary resistance lies at the upper boundary of the descending channel around 156.00.

USD/JPY loses ground after three days of gains, trading around 154.90 during the European hours on Monday. On the daily chart, technical analysis indicates a potential bullish reversal as the pair is testing the upper boundary of the descending channel pattern.

The USD/JPY pair steadies around the nine-day Exponential Moving Average (EMA) and remains capped beneath the 50-day EMA at 155.63. The 50-day EMA has begun to roll over, limiting recovery attempts. A daily close above the 50-day EMA could open room toward resistance, while failure to reclaim the short-term average keeps the tone heavy.

The 14-day Relative Strength Index (RSI) at 46 (neutral) points to stabilizing momentum. RSI recovering from 23 toward the mid-40s suggests fading bearish pressure; a move above 50 would improve the setup.

Near-term trend bias is fragile as the nine-day EMA has flattened. A close below the short-term average at 154.85 would extend the corrective phase toward the three-month low at 150.02, reached on January 27, followed by the lower boundary of the descending channel around 149.20.

The immediate resistance lies at the upper boundary of the descending channel around 156.00. A break above the channel would cause the emergence of the bullish bias and support the pair to explore the region around the six-month high of 161.00, followed by the all-time of 162.00, recorded in July 2024.

(The technical analysis of this story was written with the help of an AI tool.)