USD/JPY Hovers Near 142.50, Awaiting US Employment Report for June

[[USD/JPY]] is holding lower levels around 142.50 during early Friday morning in Europe, having retraced from the highest point in a month seen the previous day.

The Yen pair’s recent pullback may be attributed to market anticipation for the US employment report for June, coupled with a retreat in US Treasury bond yields from the multi-day high recorded on the prior day.

Adding to the bearish sentiment are signals from the MACD indicator and the clear adherence of the USD/JPY to the descending resistance line, visible since June 30, which currently stands at 143.40.

Nevertheless, the pair finds support in the horizontal region encompassing various levels since June 18, situated around 142.00, and the 200-SMA level of 141.85, which serves to limit further downward movement.

In the event that USD/JPY remains bearish beyond 141.85, a rapid decline towards the psychological round figure of 140.00 could be anticipated, while subsequent challenge for sellers may come from an ascending support line originating from July 14, positioned near 139.80.

Conversely, any potential recovery for USD/JPY remains elusive below the five-week-old descending resistance line, currently near 143.40.

If the pair manages to breach this resistance, a significant 1.5-month-long horizontal resistance zone within 143.90–144.00 will become the final barrier for the USD/JPY bears before potentially testing the yearly peak attained in June around 145.00