• USD/JPY grinds higher around intraday top after two-week rebound from multi-month low.
• Convergence of 21-DMA, downward-sloping trend line from late November guards immediate upside.
• Bullish MACD signals, firmer RSI (14) adds strength to the bullish bias.
• Bears need validation from fortnight-old ascending trend line to retake control.

USD/JPY prints mild gains as buyers muster the courage to overcome the key 130.40 resistance confluence during early Monday morning, close to 130.10 by the press time.

In doing so, the Yen pair defends the two-week rebound from the lowest levels since May 2022 while staying above a fortnight-old ascending trend line.

Additionally favoring the USD/JPY buyers are the bullish MACD signals and the firmer RSI (14), not overbought.

However, a convergence of the 21-DMA and a two-month-long downward-sloping resistance line, around 130.40, appears a tough nut to crack for the pair buyers.

Following that, a run-up towards refreshing the monthly high near 134.80 can’t be ruled out.

During the anticipated rise past 130.40, the 131.00 round figure and January 18 high near 131.60 might probe the USD/JPY bulls.

On the contrary, a downside break of the aforementioned nearby support line, close to 129.40, could recall the USD/JPY bears targeting the monthly low of 127.20.

In a case where the USD/JPY sellers keep the reins past 127.20, the May 2022 low near 126.35 will be in focus.

Overall, USD/JPY bears appear to run out of steam but the buyers need validation from 130.40.