USD/JPY Price Analysis: Rising wedge at multi-day top keeps Yen buyers hopeful near 138.50

• USD/JPY portrays bearish chart formation at the highest levels in six months.
• Downbeat MACD signals also lure Yen pair bears, 100-HMA, 200-HMA act as extra checks for sellers.
• Bulls need validation from 139.40 to retake control.

USD/JPY grinds lower past 139.00, mildly offered near 138.40 heading into Wednesday’s European session.

The Yen pair rose to a fresh high since November 2022 before posting an unimpressive closing the previous day. In doing so, the major currency pair portrays a one-week-old rising wedge bearish chart formation.

Not only the bearish pattern but the downbeat MACD signals and failure to remain firmer at the multi-day high also lures the USD/JPY sellers.

However, the 100-Hour Moving Average (HMA) level of around 138.30 restricts the immediate downside of the Yen pair, a break of which highlights the stated wedge’s confirmation point, namely the lower line surrounding 138.00.

Following that, a quick fall towards the 200-HMA surrounding 137.20 can’t be ruled out. It should be noted, however, that the rising wedge confirmation hints at the 136.00 round figure as a theoretical target.

Alternatively, the stated wedge’s top line, close to the 139.00 round figure by the press time, restricts immediate USD/JPY recovery. Also likely to challenge the Yen pair buyers is the July 2022 high of near 139.40.

Even if the Yen pair manage to cross the 139.40 hurdle, the 140.00 round figure may prod the buyers.

Overall, USD/JPY bulls appear to run out of steam but the sellers wait for clear signals.

USD/JPY: Hourly chart

Trend: Pullback expected