• USD/JPY struggles around intraday low, prints the first daily loss in four.
• Upbeat oscillators, clear break of key hurdle keep Yen bears hopeful.
• 100-EMA, 200-EMA act as additional downside filters; bulls can aim for 141.70.
• US inflation lures Fed doves but dot-plot, Powell’s Speech can turn the table.

USD/JPY bears struggle to keep the reins amid early Wednesday in Europe, despite snapping a three-day uptrend by retreating from a one-week high to around 140.00 at the latest. In doing so, the Yen pair portrays the market’s cautious mood ahead of the all-important Federal Open Market Committee (FOMC) monetary policy meeting by poking the resistance-turned-support line stretched from early May.

Also read: USD/JPY trades with mild negative bias around 140.00, downside seems limited ahead of Fed

Apart from the previous resistance line, the bullish MACD signals and upbeat RSI (14) line also keeps the USD/JPY buyers hopeful.

Hence, the Yen pair stays on the bull’s radar unless breaking the aforementioned trend line, currently around 139.90.

Even if the quote breaks the 139.90 mark, the 100-bar Exponential Moving Average (EMA) and the monthly bottom, respectively near 139.10 and 138.40, can challenge the USD/JPY sellers.

In a case where the quote drops past 138.40, the 200-EMA support of 138.00 will act as the last defense of the USD/JPY buyers.

On the contrary, recovery moves may initially aim for the previous monthly high of around 140.90, as well as the 141.00 round figure.

Following that, the 61.8% Fibonacci Expansion (FE) of its May 16 to June 01 moves, near 141.70, could gain the USD/JPY bull’s attention.

If at all the pair remains firmer past 141.70, the 142.00 threshold and the late November 2022 peak of around 142.25 can challenge the buyers.

USD/JPY: Four-hour chart

Trend: Further downside expected