USD/JPY Price Analysis: Bulls flirt with 133.00 inside monthly rising wedge

• USD/JPY retreats from intraday high, indecisive after two-day winning streak.
• Sustained break of 50-DMA, upbeat oscillators favor bulls within bearish chart pattern.
• A clear downside break of 130.60 confirms rising wedge and can recall sellers.

USD/JPY bulls take a breather during early Wednesday morning in Europe, after a two-day uptrend, as it eases to 133.00 by the press time. Even so, the Yen pair remains around a six-week high, marked the previous day.

USD/JPY buyers cheered the upside break of the 50-DMA, as well as bullish MACD signals and firmer RSI (14), to refresh the monthly high on Tuesday. However, the market’s lack of acceptance of the recent bullish bias seemed to have probed the quote’s further upside.

That said, the USD/JPY remains inside a one-month-old rising wedge bearish chart formation.

Hence, the DMA breakout joins upbeat oscillators to support the bulls but the upside room appears limited to the stated wedge’s top line, close to 133.60.

Even if the quote rises past 133.60, a two-month-old horizontal resistance region near 134.50-70, will precede the 200-DMA level surrounding 136.90 to challenge the USD/JPY bulls.

Meanwhile, pullback moves remain elusive unless staying beyond the 50-DMA level of 132.00.

Following that, a convergence of the 21-DMA and the aforementioned wedge’s lower line, close to 130.60, appears a tough nut to crack for the USD/JPY bears.

It should be noted that the 130.00 round figure will act as an extra filter towards the south of 130.60 before directing the USD/JPY sellers towards the theoretical target of the stated wedge, namely 125.50.

USD/JPY: Daily chart

Trend: Limited upside expected