USDJPY jostles with a five-week-old horizontal resistance by slipping beneath monthly horizontal support and 200-SMA as markets sensed the Bank of Japan’s (BoJ) exit from the loose monetary policy and unimpressive US employment report. Also keeping the Yen sellers hopeful, despite the latest rebound, are the bearish MACD signals and downward-sloping RSI (14) line. With this, the bears are all set to challenge the 141.00 round figure comprising the 50% Fibonacci retracement of the June-July downturn. Following that, the 38.2% Fibonacci retracement level of 140.30 and the 140.00 psychological magnet may test the downside move. It’s worth observing that a three-week-old rising support line, close to 139.55 at the latest, acts as the last defense of the buyers.
On the flip side, the aforementioned support-turned-resistance zone and the 200-SMA, around 141.85-142.00, challenge the USDJPY buyers before directing them to the five-week-old horizontal hurdle surrounding 144.00. In a case where the Yen pair rises past 144.00, the yearly peak marked in June around 145.10, will be in the spotlight. It should be noted that the quote’s strength past 145.10 could direct bulls toward the 150.00 round figure ahead of highlighting the next year’s top of around 152.00.
Overall, the talks of a looming BoJ rate hike or an alteration into the Yield Curve Control (YCC) policy exert downside pressure on the USDJPY pair but the US inflation is on the cards and can help the pair register another positive week. Hence, it's advisable to be cautious while trading the Yen pair.