USD/JPY Price Analysis: Extends bounce off 141.40 support confluence within rising wedge
- USD/JPY picks up bids to reverse the previous day’s retreat from the highest levels in seven months.
- Upside break of immediate resistance line, firmer oscillators favor intraday buyers of Yen pair.
- 100-HMA joins bottom-line of weekly rising wedge to restrict short-term downside.
- Bulls need to cross 142.55 to topple fears of a pullback.
USD/JPY regains upside momentum, after reversing from yearly top the previous day, as it makes rounds to the intraday high of around 141.75 heading into Wednesday’s European session.
In doing so, the Yen pair cheers the latest breakout of an immediate resistance line stretched from the yearly top marked on Monday while bouncing off the 141.40 support confluence comprising the 100-Hour Moving Average (HMA) and lower line of a one-week-old rising wedge.
It’s worth observing that the bullish MACD signals and the firmer RSI (14) line, not overbought, adds strength to the upside bias about the USD/JPY pair.
With this, the risk barometer pair is all set to approach the yearly peak surrounding 142.25, with the 142.00 round figure acting as an immediate resistance.
However, the aforementioned rising wedge’s top line, close to 142.55 by the press time, restricts the Yen pair’s advances past 142.25.
In a case where the USD/JPY bulls manage to defy the bearish chart pattern by crossing the 142.55 resistance, it can aim for a horizontal area surrounding 145.00 that encompasses early September 2022 top and the last October’s bottom.
On the flip side, a downside break of the 141.40 support confluence isn’t an open welcome for the USD/JPY bears as the 200-HMA and a fortnight-long rising trend line, close to 140.50 and 139.80 in that order, could check the sellers.
USD/JPY: Hourly chart
Trend: Further upside expected