USD/JPY Price Analysis: Approaches Japan’s trigger for intervention inside monthly rising wedge
- USD/JPY grinds higher around the levels that pushed BOJ towards market intervention.
- Bearish chart pattern, nearly overbought RSI could test further moves.
- 10-DMA adds strength to the 144.80 support confluence, May 1990’s low lures bulls.
USD/JPY remains sidelined as traders turn cautious around the 145.90 level that previously push the Bank of Japan (BOJ) towards market intervention. That said, the yen pair retreats to 145.65 by the press time of Tuesday’s Asian session.
In addition to the market’s anxiety, nearly overbought RSI conditions and the bearish MACD signals could also be linked to the quote’s latest pullback.
As a result, a one-month-old rising wedge bearish chart pattern gains the market’s attention.
However, the 10-DMA strengthens the 144.80 support and challenges the bears. On the same side is an upward-sloping support line from early August, around 140.00.
Hence, the USD/JPY buyers remain hopeful unless the quote stays past the 140.00 threshold, even if a short-term pullback can be witnessed on the break of 144.80.
On the contrary, the latest high surrounding 145.90 and the upper line of the stated wedge, close to 146.90 at the latest, could challenge the USD/JPY bulls before directing them to the May 1990’s low near 148.90.
USD/JPY: Daily chart
Trend: Limited upside expected