USDJPY used the support around 109.10 once again to stand on its feet on Wednesday after two days of declines.

The tough resistance trendline drawn from the top of 111.65 remains the main target at 110.00, and the pair’s resilience above 109.00 increases the odds for an upside breakout. But the momentum indicators are not fully in line with this narrative. The RSI is below its 50 neutral mark and continues to swing in a range. The Stochastics are also following a horizontal trajectory, while the MACD is hovering around a former support area below its zero and signal lines, flagging a neutral-to-bearish short-term bias.

If the trendline gives way, the bulls will push for a close above the 110.55 barrier, which has been caping upside movements since the start of July. A successful violation at this point could set a test around the 111.00 number before all eyes shift to the 111.65 peak.

Alternatively, failure to hold above 109.10 could initially see some consolidation around the two-month low of 108.71. A clear step below this floor would open the door for the 200-day simple moving average currently around 108.20, while deeper, an extension past April’s low of 107.47 would send stronger bearish signals about the neutral medium-term outlook.