USD/JPY technical analysis: At session lows after facing rejection at key resistance

• USD/JPY on Tuesday failed to close above resistance at 106.78.
• The pair is on the defensive at press time, still, the outlook remains neutral.

USD/JPY is facing downside pressures a day after failing to close above the former support-turned-resistance of 106.78 (June 25 low).

As of writing, the pair is trading at 106.30, the lowest point of the day.

The pair failed to take out resistance at 106.78 on Tuesday, but closed the day with 1.37% gains, marking a sharp reversal from the slow downturn from 107.09 to 105.05 seen in the preceding five days.

So, with the pair holding well above Tuesday's low of 105.07, the immediate bias remains neutral.

A close below 105.05 would revive the bearish outlook. Meanwhile, the bulls need a break above Tuesday's high of 106.98.

Daily chart

Trend: Neutral

Pivot points