USD/JPY Price Analysis: Bulls start to move in and eye 129.60

• USD/JPY bulls eye the daily resistance zone where the 61.8% ratio meets the structure near 129.60.
• Bears need to get below the critical 127.50s.

USD/JPY was forced lower on a bout of US Dollar strength on Thursday in an extension of the drop from the mid-point of the 130s. The price has been supported in the midpoint of the 127s and has left no bias on the carts from an immediate directional perspective until the 129.50s or the aforementioned 127.40s are broken. However, there are prospects of a meanwhile correction for the day ahead as traders get set for the US Nonfarm Payrolls data as the last puzzle of the puzzle for this week. 

USD/JPY daily chart

The price has met the 61.8% Fibonacci retracement at 127.588 of the move from between the November 2021 swing lows of 112.53 and the October swing highs of 151.95 highs range which is acting as a support which the bears need to break.

Zoomed in ... 

The price is drifting out of the deciding channel having hit support and this leaves prospects of a phase of consolidation outside of the channel that could lead to accumulation for a move higher. 

Zoomed in ... 

In the meantime, a correction could be in order towards prior support that would be expected to act as a resistance zone where the 61.8% ratio meets the structure near 129.60.