USD/JPY Price Analysis: Bulls test confluence of bear cross and triangle break

• The greenback bulls are flirting with the confluence of bear cross and triangle break.
• A range shift by the RSI (14) into the 40.00-60.00 zone indicates a loss of downside momentum.
• Violation of 138.88 will empower the asset to recapture all-time highs at 139.38.

The USD/JPY pair has displayed a vertical upside move in the Asian session as the US dollar index (DXY) has witnessed a bullish open-drive session. A responsive buying action from a low of 137.06 has driven the asset above the critical hurdle of 137.56 comfortably.

On an hourly scale, a downside break of the symmetrical triangle on Thursday resulted in a perpendicular downside move. The upward-sloping trendline of the above-mentioned chart pattern is placed from July 12 low at 136.47 while the downward-sloping trendline is plotted from July 14 high at 139.38. The expansion in volatility was followed by volumes and wide-range candlesticks by the market participants.

A bear cross has been represented by the 20- and 200-period Exponential Moving Averages (EMAs) at 137.78, which adds to the downside filters. The asset is auctioning near the confluence of a bear cross and the upward-sloping trendline of the symmetrical triangle.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range from the bearish range of 20.00-40.00, which indicates that the greenback bulls are not actively bearish.

Should the asset drops below Tuesday’s low at 137.48, the yen bulls will drag the asset towards Thursday’s low at 137.00. A breach of the latter will unleash the yen bulls to drag the asset further towards July 12 low at 136.47.

Alternatively, the greenback bulls will extend their recovery if the asset oversteps the round-level resistance of 138.00. An occurrence of the same will strengthen the greenback and will drive the asset towards Thursday’s high at 138.88, followed by July 14 high at 139.38.

USD/JPY hourly chart