USD/JPY Price Analysis: Bulls flirt with 131.00 inside weekly rising wedge

• USD/JPY remains on the front foot around 20-year top marked in April.
• Short-term bearish chart pattern, overbought RSI may trigger pullback moves but buyers remain hopeful above fortnight-old support line.

USD/JPY stays bullish as the three-day upside momentum approaches a two-decade high flashed last month. However, an immediate rising wedge bearish chart formation joins overbought RSI conditions to test the further upside. That said, the yen pair seesaws around 131.00, up 0.30% intraday, during early Monday morning in Europe.

In addition to the overbought RSI and the wedge’s resistance around 131.20, the previous multi-year high of 131.25, will also act as nearby upside filters to challenge USD/JPY bulls.

Should the USD/JPY prices rally beyond 131.25, the upward trajectory can slowly approach the year 2002’s high surrounding 135.20.

Alternatively, a downside break of 130.70 can confirm a short-term downside targeting the 200-HMA and an ascending support line from April 26, respectively around 129.85 and 129.30.

However, a clear downside break of 129.30 won’t hesitate to aim for the year 2015’s high surrounding 125.85.

Overall, USD/JPY remains firmer but a short-term pullback can’t be ruled out.

USD/JPY: Hourly chart

Trend: Pullback expected