USD/JPY Price Analysis: Bears occupy driver’s seat despite snapping four-day downtrend near 139.00

USD/JPY clings to mild gains during the first positive day in five.
Sustained downside break of previous key support, bearish trend channel keeps Yen pair sellers hopeful.
100-HMA acts as the last defense of Yen sellers, bumpy road awaits pair sellers on US NFP day.

Anil Panchal FXStreet

USD/JPY struggles to defend the first daily gains in five as it seesaws around 139.00 heading into Friday’s European session, mildly bid near 138.85 by the press time.

The Yen pair’s latest corrective bounce could be linked to the RSI (14) line’s gradual rebound from the oversold territory, as well as the quote’s inability to break the lower line of a bearish channel stretched from Tuesday. The recovery moves also justify the bullish MACD signals.

However, a one-week-old previous support line, close to 139.15 at the latest, restricts the USD/JPY pair’s immediate upside within a short-term bearish channel, currently between 138.35 and 139.50.

Even if the Yen pair manages to deft the immediate bearish chart formation, the 100-Hour Moving Average (HMA) near 139.70, quickly followed by the 140.00 round figure, could challenge the bulls before giving them control.

On the flip side, a clear break of 138.35 will also reject the previously stated bearish channel but in favor of the USD/JPY sellers. Following that, the quote could drop to the May 19 swing low of around 137.40.

It’s worth noting that the 50% and 61.8% Fibonacci retracement level of the pair’s moves between May 11 and 30, around 137.30 and 136.50, could challenge the bears afterward.

Apart from the aforementioned technical details, the Yen pair’s risk-barometer status also justifies the pair’s latest inaction as the markets await the US employment report.

Also read: Forex Today: US Dollar struggles to find demand, all eyes on NFP

USD/JPY: Hourly chart

Trend: Bearish

Additional important levels

Overview
Today last price	138.92
Today Daily Change	0.13
Today Daily Change %	0.09%
Today daily open	138.79

Trends
Daily SMA20	137.61
Daily SMA50	135.13
Daily SMA100	133.84
Daily SMA200	137.28

Levels
Previous Daily High	139.95
Previous Daily Low	138.43
Previous Weekly High	140.72
Previous Weekly Low	137.49
Previous Monthly High	140.93
Previous Monthly Low	133.5
Daily Fibonacci 38.2%	139.01
Daily Fibonacci 61.8%	139.37
Daily Pivot Point S1	138.16
Daily Pivot Point S2	137.54
Daily Pivot Point S3	136.64
Daily Pivot Point R1	139.69
Daily Pivot Point R2	140.58
Daily Pivot Point R3	141.21

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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