Bulls tried to push the greenback above the 104.00 resistance but failed miserably, and since US yields are on the decline again, the USDJPY pair lost its major bullish driver.
There are two important support zones for the USD now - the first one seems to be at post-election lows at 103.15, and the next support could be at the current cycle lows near 102.65. Breaking below 102.65 should confirm the long-term downtrend.
Additionally, as long as the USDJPY pair trades above the long-term downtrend line, currently near 103.80, the outlook also looks bearish, and traders will most likely sell any rallies.
Fundamentally, the trend also points to further downside as both the Fed and Dems are extremely dovish.
If the pair rises above 104.40/50, we could see some stabilization, with the upside potential toward 105.
