FXstreet.com (Barcelona) - After retreating off of overnight highs in the 81.60 region, the USD/JPY has edged lower during European trading Monday, localizing in the area of 81.24/25 in these moments. In more recent minutes however, the cross has rebounded nearly 8 pips, operating safely above its session lows of 81.13.

According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “Near-term bulls remain in play, as the USD/JPY posts fresh high at 81.58 overnight, surpassing a previous high and Fib 61.8% of 84.17/77.12 descend at 81.45. Stronger corrective action cannot be ruled out, as RSI/MACD bearish divergence appears on hourly chart and 4h indicators are in overbought territory.

In these moments the USD/JPY is declining by a margin of -0.18% below its opening price. Initial support lies at the 81.00 barrier, reinforced by its 55-day EMA, ahead of 80.67 (previous peak and Fib 38.2%), where any deeper dips should be contained. Conversely, a break above the 81.58 will lead to resistances towards the 82.00 level, followed by 82.20 (mid-May highs), cites Drvenica.