USDJPY buyers are struggling this week to clear the 104.00 resistance area.
I talked about this level last week.
It’s the trend line that extends from the late 2012 lows.
You can see where USDJPY closed December below the trend line.
That means the 104.00 area is intact on a monthly closing basis.
I can’t overemphasize that.
It means that as long as USDJPY remains below 104.00 on a monthly closing basis, the breakdown is intact.
So, even if a day or week closes above 104.00, it may not be enough to reverse the bearish trend.
Furthermore, USDJPY has carved lower highs since February 2020.
Until buyers can take out a prominent high like the one from November 2020 near 105.70, the downtrend is alive and well.
Just keep in mind that 103.00 support isn’t far away from today’s price.
USDJPY needs to get below the 103.00 area on a weekly closing basis to open the door to the 101.00 region.