USDJPY Price Analysis: Bounces off golden ratio to defend 139.00 but bears stay hopeful

• USDJPY snaps two-day downtrend but struggles to defend buyers around 11-week low.
• 2.5-month-old horizontal area challenges buyers amid bearish MACD.
• Oversold RSI restricts immediate downside around 61.8% Fibonacci retracement level.

USDJPY bulls struggle to keep the reins around the lowest levels since late August, despite positing the first daily gains in three around 139.15 during early Monday.

In doing so, the yen pair bounces off the 61.8% Fibonacci retracement level of the pair’s August-October upside, also known as the “golden ratio”. Also underpinning the current rebound are the oversold RSI (14) conditions.

However, a horizontal area comprising multiple levels marked since late August, around 140.25-40, guards the immediate upside of the USDJPY pair. Additionally challenging the pair buyers is the 100-DMA hurdle surrounding 140.80.

In a case where the quote remains firmer past 140.80, the support-turned-resistance line from early August, near 144.40, will be in the spotlight.

Alternatively, a daily closing below the stated golden ratio, around 138.65, could trigger a fresh bout of selling.

Following that, the early August swing high around 135.60 could test the USDJPY bears before directing them to August month’s low near 130.40.

Overall, USDJPY remains on the bear’s radar despite the latest corrective bounce.

USDJPY: Daily chart

Trend: Further weakness expected