USD/JPY Price Analysis: Bulls are up to test key resistance near 132.60, 50% reversion and support eyed

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• USD/JPY is on the backside of the prior bear trend which gives a bullish bias. 
• A 50% mean reversion comes in at 131.80 meeting the neckline structure. 

USD/JPY is up on the day by some 0.9% as the pair moves in on prior resistance near 132.60, making its way to the backside of the prior bearish trend. This leaves the outlook bullish for the days ahead. 

Meanwhile, the Federal Reserve began a two-day meeting earlier on Tuesday and the central bank is expected to raise interest rates by 25 basis points on Wednesday, or skip a chance at raising borrowing costs this month.

The following illustrates the technical outlook as per the falling wedge on the 4-hour charts and the W-formation:

USD/JPY H4 charts

The W-formation shows the price meeting prior resistance and a restest of the neckline, which would be expected to act as support, could be the final show from the bears as bulls take control.

The price is on the backside of the prior bear trend and a 50% mean reversion comes in at 131.80 meeting the necklines structure.