USD/JPY Price Analysis: Drops the most in three weeks as bears eye 115.50

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USD/JPY remains on the back foot around intraday low.
RSI pullback from overbought region adds to the bearish bias.
November’s top lure short-term sellers, 11-week-old resistance line challenge buyers.

USD/JPY stays pressured around 115.85 while printing the biggest daily losses since mid-December during early Thursday.

The yen pair’s latest weakness could be linked to the earlier pullback from a multi-day-old resistance line as well as the RSI decline from the overbought region. As a result, further losses by the pair can’t be ruled out.

The same direct USD/JPY sellers towards November’s high near 115.50. However, any further downside will be challenged by an ascending support line from December 17 and 50-SMA, respectively around 115.40 and 115.25.

Meanwhile, the corrective pullback may initially aim for the 116.00 threshold before the 116.25 hurdle. In a case where USD/JPY bulls keep reins past 116.25, an upward sloping trend line from October 20, around 116.40, will be in focus.

Overall, USD/JPY prices are likely to witness further losses but a reversal of the current bullish trend is off the table, at least for now.