USD/JPY Price Analysis: Off weekly support to defend 114.00

• USD/JPY snaps two-day uptrend, mildly offered of late.

• Weekly support line, 100-HMA restricts immediate downside.

• 61.8% Fibonacci retracement level, short-term resistance line test recovery moves.

USD/JPY licks its wounds around 114.00, down 0.12% intraday, as European traders brace for Wednesdays bell. In doing so, the yen pair bounces off a one-week-old ascending support line by the press time.

The recovery moves currently eye 50% and 61.8% Fibonacci retracement levels of October 20-22 downtrend, respectively around 114.05 and 114.20.

However, any further advances will be challenged by the weekly resistance line near 114.30.

In a case where the USD/JPY buyers cross the 114.30 hurdle, the multi-year high flashed the last week, around 114.70, will be in focus.

Alternatively, a 100-HMA level near 113.90 adds to the immediate trend line support of 114.00 to restrict short-term downside.

Following that 113.70 and 113.20 will be important levels to watch before the USD/JPY bears could aim for Septembers peak of 112.00.

Given the bearish MACD and weekly triangle formation, USD/JPY remains pressured.

USD/JPY: Hourly chart

Source: FXStreet