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.

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