The USD/JPY pair continues to tread on unstable ground at 140.60, with buyers grappling to maintain the previous upswing as we move into Monday’s European session. The current situation confirms the overbought condition as indicated by the RSI (14) and the pair’s failure to break past a resistance line that has been ascending for a week.

However, signs of optimism remain for the USD/JPY buyers. The bullish indications from the MACD, the presence of an upward trend channel over the past two weeks, and the pair’s resilience in remaining above the 200-SMA keep the hope alive.

The recent pullback in the pair continues to be uncertain unless it breaches the 200-SMA support level, set at 135.75.

If it crosses this line, the monthly low of approximately 133.50 and the psychological threshold of 130.00 might serve as the last line of defense for the USD/JPY buyers.

The bottom line of the mentioned channel and a former resistance line from May 2nd, near 139.75 and 139.20 respectively, might serve as potential pauses to monitor during periods of weakness in the Yen pair.

On the flip side, breaking the weekly resistance line at around 141.05 could push the USD/JPY towards the peak of the aforementioned channel, which is near 142.00. However, the half-yearly high of about 142.25, which also marks the peak of late November 2022, will be the ultimate challenge for the Yen buyers to regain control.