• USDJPY fails to cross above 3-month high

• Momentum indicators suggest bearish retracement

USDJPY has come under renewed selling pressure, falling back near the steep short-term ascending trend line, which has been drawn since the end of December. Despite the latest pullback though, the index has not posted a fresh lower low, which makes one hesitant to trust further declines for now.

Looking at momentum oscillators on the daily chart though, they suggest further declines may be on the cards in the short-term. The RSI is ticking down after the fail attempt to touch the 70 level, while the stochastic oscillator posted a bearish crossover within its %K and %D lines, detecting negative momentum.

If the bulls retake control, price advances may stall initially near the latest highs at 150.87. A potential upside violation would drive the market until the 151.90 barricade before meeting the next round numbers such as 152.00 and 153.00.

More descending movements could take the market beneath the uptrend line, resting near the 149.70 barrier and the 20-day simple moving average (SMA) at 149.40 ahead of 148.80. Even lower, the 50- and the 200-day SMAs at 146.80 and 145.90 respectively could switch the outlook to a bearish one.

All in all, USDJPY has been bullish over the past two months but a bearish retracement might be on the table for the next few sessions.