USD/JPY Price Analysis: Grinds higher around 136.50 within monthly rising wedge

• USD/JPY remains sidelined, fails to extend week-start pullback from two-month high.
• Impending bear cross on MACD, bearish chart formation challenges Yen pair buyers.
• 50-SMA adds strength to the 135.00 support holding the door for sellers.

USD/JPY seesaws near 136.30-40 during the initial hours of Tuesday’s European session. In doing so, the Yen pair fails to extend the previous day’s U-turn from the two-month high while staying inside a three-week-old rising wedge bearish chart pattern.

In addition to the rising wedge and lackluster moves, the impending bear cross on the MACD also keeps USD/JPY sellers hopeful unless the quote defies the bearish chart pattern. For that, the Yen pair needs to remain successfully beyond the 136.90 immediate hurdle, as well as cross the 137.00 round figure.

It’s worth observing that the mid-December 2022 high near 138.20 acts as the last defense of the USD/JPY bears, a break of which could quickly propel the prices towards the 140.00 psychological magnet.

Meanwhile, a convergence of the 50-SMA and the aforementioned wedge’s bottom line highlights the 135.00 round figure as the short-term key support.

Should the USD/JPY bears keep the reins below the 135.00 support confluence, the early month high near 133.00 may probe sellers during the theoretical south run targeting the monthly low of near 128.00.

Overall, USD/JPY bulls seem to run out of steam after posting the biggest monthly jump in four months. Though, bears are far from entry unless the quote stays beyond 135.00.

USD/JPY: Four-hour chart

Trend: Limited upside expected