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.

Anil Panchal FXStreet

USD/JPY regains upside momentum, after reversing from the 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, add 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 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, they can aim for a horizontal area surrounding 145.00 that encompasses the 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

Additional important levels

Overview
Today last price	141.7
Today Daily Change	0.21
Today Daily Change %	0.15%
Today daily open	141.49

Trends
Daily SMA20	140.09
Daily SMA50	137.23
Daily SMA100	135.24
Daily SMA200	137.22

Levels
Previous Daily High	142.25
Previous Daily Low	141.21
Previous Weekly High	141.92
Previous Weekly Low	139.01
Previous Monthly High	140.93
Previous Monthly Low	133.5
Daily Fibonacci 38.2%	141.61
Daily Fibonacci 61.8%	141.86
Daily Pivot Point S1	141.05
Daily Pivot Point S2	140.61
Daily Pivot Point S3	140.01
Daily Pivot Point R1	142.09
Daily Pivot Point R2	142.69
Daily Pivot Point R3	143.13

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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