USD/JPY Price Analysis: Pullback from multi-year high teases rising wedge confirmation below 122.00

• USD/JPY takes offers to refresh intraday low, snaps five-day uptrend while retreating from December 2015 levels.
• MACD, RSI also favor sellers eyeing rising wedge bearish chart pattern’s confirmation.
• Bulls need a clear break of 122.55 to retake controls.

USD/JPY consolidates recent gains around 121.85, down 0.40% intraday during Friday’s Asian session. In doing so, the yen pair reverses from the highest levels in almost seven years while refreshing daily low of late.

The pullback moves become interesting as the prices portrayed a rising wedge bearish chart pattern in the last week.

Given the RSI decline from the overbought territory and the most bearish MACD signals in a few days, the USD/JPY prices are likely to confirm further downside by breaking the 121.80 nearby support.

Following that, the 100 and 200 HMAs, respectively near 120.70 and 119.60, may challenge the pair’s south-run targeting the mid-March bottom around 118.20.

On the contrary, recovery moves need to defy the bearish wedge formation, with an upside break of 122.55, to convince USD/JPY buyers for re-entry.

Should the quote remains firmer past 122.55, the 123.00 threshold and late 2015 peak surrounding 123.60 will lure the bulls.

USD/JPY: Hourly chart

Trend: Further weakness expected