USD/JPY renews its intraday high near 131.70

- USD/JPY picks up bids to poke short-term key resistance during the first positive day in three.

- Ascending trend line from mid-January challenges Yen pair bears amid nearly oversold RSI.

- Sluggish MACD, likely trendline breakout on RSI (14) add strength to the bullish bias.

- 200-SMA holds the key to buyers’ entry; sellers have a bumpy road towards the south.

USD/JPY renews its intraday high near 131.70 during the first positive day in three amid early Tuesday in Europe. In doing so, the Yen pair bounces off the lowest levels in five weeks while poking a one-week-old resistance line.

That said, the sluggish MACD signals and the RSI (14) line’s battle with the fortnight-old trend line resistance suggests that the upside momentum is likely to return to the table.

Adding strength to the bullish bias could be the USD/JPY pair’s recovery from an ascending support line from January 16, close to 130.60 by the press time.

As a result, the USD/JPY pair is likely to cross the immediate trend line hurdle surrounding 131.70, which in turn could allow the buyers to aim for another upside hurdle, namely a downward-sloping resistance line from March 08, close to 133.10 at the latest.

It should, however, be noted that the USD/JPY bulls should remain cautious unless the quote remains below the 200 - SMA level surrounding 134.10.

Alternatively, a clear downside break of the stated multi-day-old support line, around 130.60, isn’t an open invitation to the USD/JPY bears as multiple lows marked during February 10 and early January, respectively near 129.80 and 128.00, as well as the Year-To-Date (YTD) bottom near 127.20 could challenge the Yen pair sellers afterward.

USD/JPY: Four-hour chart