USD/JPY rebounds off downtrend line

USD/JPY has rebounded from the 23.6% Fibonacci retracement level of the decline from 158.86 to 139.85, located at 144.35. This level coincides with a long-term descending trend line, now acting as support amid easing geopolitical tensions.

As long as the price holds above this breached trend line, bullish momentum may persist, targeting the 38.2% Fibonacci retracement at 147.17, followed by the psychological barrier at 148.00. A sustained move higher could open the door toward the 148.65 resistance and the 200-day simple moving average (SMA) at 149.40, a key  hurdle.

Conversely, a drop below the short-term SMAs and the 144.35 support level could intensify bearish pressure, exposing the 142.00–142.60 region.

From a technical standpoint, the RSI remains slightly above the neutral 50 mark, suggesting mild bullish bias, while the MACD is moving sideways above its signal and zero lines, indicating a lack of strong directional momentum.

Overall, USD/JPY maintains a cautiously bullish outlook above the 144.35 support and the broken trend line. However, confirmation through a break above the 200-day SMA would strengthen the bullish case.