USD/JPY technical analysis: Holds above a previous resistance break-point, NFP in focus

• The overnight break below 108.30 level was seen as a key trigger for bearish traders.
• Slightly oversold conditions on hourly charts helped limit the downside ahead of NFP.

The USD/JPY pair remained depressed through the early European session on Friday and was seen consolidating in a range around the 108.00 handle, or three-week lows.
 
Given the pair’s inability to find acceptance above the very important 200-day SMA, the overnight slide below the 108.30 support was seen as a key trigger for bearish traders.
 
This coupled with the fact that technical indicators on the daily chart have just started drifting into the negative territory points to a further near-term depreciating move.
 
However, oscillators on hourly charts are already flashing oversold conditions and seemed to be the only factor holding investors from placing any aggressive bearish bets.
 
Heading into Friday’s release of the US jobs report, a five-month-old descending trend-line resistance breakpoint, around the 107.65 region, might help limit the downside.
 
The mentioned resistance-turned support nears 38.2% Fibonacci level of the 112.40-104.45 downfall, which if broken could accelerate the fall further towards the 107.00 handle.
 
The downward trajectory could further get extended towards the next major support near mid-106.00s – early October swing lows – ahead of the 106.25 region (23.6% Fibo.).
 
On the flip side, 108.40-50 region now becomes immediate resistance, above which a bout of short-covering might assist the pair to aim back towards challenging the 109.00 handle (200-DMA).