• The USD/JPY pair failed to capitalize on the overnight bounce from the 109.00 neighbourhood and met with some fresh supply during the Asian session on Wednesday.
• The optimism over US car tariff delay turned out to be short-lived and the pair again struggled to find acceptance above 100-hour SMA amid reviving safe-haven demand.
Looking at a slightly broader picture, the pair remains well within a broader trading range held since the beginning of this week and hence, it would be prudent to wait for a convincing break before traders start positioning for the next leg of a directional move.
Given that the pair has repeatedly faced rejection at higher levels, bearish technical indicators on hourly/daily charts support prospects for an eventual break on the downside and an extension of the recent/well-established near-term bearish trend.
USD/JPY 1-hourly chart