USD/JPY Price Analysis: Stays defensive above 138.00 inside bull flag

• USD/JPY bounces off intraday low to pare recent losses inside bullish chart pattern.
• Oscillators join multiple supports to challenge bears until the quote stays beyond 137.90.
• Bulls need 138.65 breakout to retake control and refresh the multi-year high.

USD/JPY bears struggle to keep reins as the quote recovers to 138.35 heading into Monday’s European session. In doing so, the yen pair remains inside a bull flag chart pattern during the second negative day.

The quote’s latest rebound took place from the weekly support line, around 138.08 by the press time. The recovery moves also track firmer RSI and the easing bearish bias of the MACD to keep buyers hopeful.

However, a clear upside break of the stated bull flag’s upper lie, at 138.65 by the press time, appears necessary for the USD/JPY buyers to challenge the 23-year high marked during the last week, around 139.40.

In doing so, the 140.00 threshold could lure short-term bulls ahead of the theoretical target surrounding 142.00.

On the contrary, a downside break of the weekly support line near 138.65 isn’t a call to the USD/JPY bears as the support line of the stated flag and the 100-HMA, around 137.95, appears a tough nut to crack for the sellers.

Following that, the corrective pullback may aim for July 12 low near 136.50. However, the one-week-old horizontal support around 137.75-70 could challenge the USD/JPY sellers.

USD/JPY: Hourly chart

Trend: Bullish