- USD/JPY struggles to defend upside momentum at yearly top.
- Rising wedge bearish chart formation, fears of Japan government intervention Yen sellers.
- 100-HMA, one-week-long ascending support line act as additional downside filters.
- Bulls need to provide daily closing beyond 145.10 to keep the reins.
USD/JPY buyers lack upside momentum during early Wednesday as the Yen pair seesaws near 144.00, printing mild losses heading into the European session.
The quote’s latest performance appears interesting as it stays within the weekly rising wedge bearish chart formation while making rounds to the highest levels since November 2022.
That said, the bearish MACD signals, steady RSI (14) line and chatters about the Japanese government’s market intervention also seem to challenge the USD/JPY buyers of late.
On the same line is the cautious mood ahead of Bank of Japan (BoJ) Governor Kazuo Ueda’s speech at the European Central Bank (ECB) Forum in Sintra.
With this, the USD/JPY sellers remain hopeful of consolidating the biggest monthly gains since February.
However, a clear downside break of the 143.50 support becomes necessary to confirm the bearish chart formation suggesting a theoretical target of 145.70.
Even so, the 100-Hour Moving Average (HMA) and the one-week-old rising support line, respectively near 143.30 and 142.80 act as additional downside filters to challenge the USD/JPY bears.
Meanwhile, the stated wedge’s top line of near 144.20 guards the USD/JPY pair’s immediate upside ahead of the October 2022 low of 145.10. Following that, the theoretical target of 145.70 and the 146.00 round figure may lure the pair buyers.
USD/JPY: Hourly chart
Trend: Pullback expected
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