USD/JPY Price Analysis: Struggles to defend 111.00 inside fortnight-old rising channel

• USD/JPY fades bounce off 100-HMA amid downbeat Momentum.
• Bullish chart formation back buyers aiming for fresh multi-day top.

USD/JPY eases from intraday top to 111.12, up 0.07% on a day, amid early Monday. In doing so, the yen pair remains inside a two-week-long ascending trend channel formation while fading the bounce off 100-HMA.

Given the downbeat Momentum line, the quote is likely to retest the key moving average surrounding the 111.00 threshold. However, the pair’s further weakness will be questioned by the stated channel’s support line, around 110.70.

It’s worth noting that a clear downside break of 110.70 will confirm the USD/JPY short-term downward trajectory towards the 110.00 round figure, with the June-end lows near 110.40 likely acting as an intermediate halt.

On the contrary, 111.35 and the latest top close to 111.70 may lure the pair buyers during further upside. Though, the channel’s upper line near 111.80 and the 112.00 psychological magnet will test the USD/JPY bulls afterward.

Should the pair buyers remain dominant past 112.00, the previous year’s top surrounding 112.20 and 2019 high of 112.40 will be in focus.

USD/JPY: Hourly chart

Trend: Pullback expected