USD/JPY Price Analysis: Slips below 137.00 within one-week-old rising wedge

• USD/JPY retreats from 10-week high to print the first loss-making day in three.
• Downside break of three-day-old support line, bearish MACD signals favor sellers.
• Rising wedge confirmation needs validation from 200-HMA to convince sellers.

USD/JPY takes offers to extend pullback from the Year-To-Date (YTD) high, marked the previous day. That said, the Yen pair renews its intraday low near 136.50 during early Friday, snapping a two-day winning streak at the latest. In doing so, the quote remains pressured inside a one-week-old rising wedge bearish chart formation.

It’s worth noting that the USD/JPY pair’s downside break of a short-term support line, now resistance around 137.00, on Thursday joined the bearish MACD signals to keep sellers hopeful of witnessing further declines.

The same highlights the lower line of the aforementioned rising wedge, close to 135.85 by the press time, as the key support.

It should be observed, however, that the 200-Hour Moving Average (HMA) level surrounding 135.60 acts as an extra filter towards the south before convincing the USD/JPY bears to aim for 132.80 theoretical target of the rising wedge, if at all the prices remain weak past 135.85.

Meanwhile, a descending resistance line from the latest peak restricts the USD/JPY pair’s immediate upside near 136.75, a break of which will highlight the previous support line from Wednesday and the wedge’s top line, respectively around 137.00 and 137.20 at the latest.

Should the quote remains firmer past 137.20, a run-up towards December 2022 peak surrounding 138.20 can’t be ruled out.

USD/JPY: Hourly chart

Trend: Further downside expected