USD/JPY Price Analysis: Flirts with 200-HMA inside immediate rising channel

• USD/JPY eases from four-day top inside a bullish chart pattern.
• MACD suggests further consolidation of recent gains, 104.00 become the key support.

Having cleared 200-HMA for the first time in over a week, USD/JPY recedes to 104.65 during early Monday. Even so, the pair maintains a four-day-old rising trend channel formation.

While recent softness in the MACD histogram suggests the pair’s further declines to 104.50 immediate support, the lower line of the stated channel, currently around 104.25 could probe the USD/JPY sellers afterward.

If at all the quote drops below 104.25, lows marked during September and October highlights the 104.00 threshold as the crucial support.

On the flip side, the upper line of the channel, at 104.85 now, holds the gate for the USD/JPY buyers targeting the October 27 high near 105.05.

In a case where the bulls manage to keep the reins above 105.05, 105.70 and the previous month’s peak surrounding 106.10 may become their favorites.

USD/JPY hourly chart

Trend: Pullback expected