The USDJPY pair failed to maintain the bullish momentum and was down for three consecutive days on Friday, trading at around 110.20 at the time of writing.
The greenback is now testing its first support in the 110 - 110.20 zone, where the 8 and 21-day EMAs are converged, along with the psychological number of 110.
Should the pair drop below 110, the short-term outlook could change to bearish, targeting the 109 support again.
As you can see from the chart, the medium and long-term outlooks are neutral as the pair has not moved anywhere in five months, and it remains near the pre-covid crash highs.
If the pair starts advancing again, the selling resistance is located at previous highs near 110.60, with the next target for bulls at the current cycle highs at 111.60.
However, the USDJPY pair has been one of the most boring pairs recently, so expect little to no volatility unless a large move starts again (similar to the February - March run higher).