• The asset is trading subdued amid the Darvas box formation.
• A bull cross, of 20- and 50-EMAs points more upside ahead.
• The yen bulls may dictate prices if the asset tumble below 121.30.

The USD/JPY pair has performed lackluster in the previous four trading sessions after falling sharply from recording a six-year high at 125.10 last week. On Monday, the major is trading subdued amid a weak US dollar index (DXY).

On the hourly scale, USD/JPY is oscillating in a ‘Darvas box’ that indicates a volatility contraction, which is followed by an expansion in the same. Usually, explode of a Darvas box results in a continuation of the ongoing trend after a corrective move. The chart pattern has been placed in a narrow range of 121.33-123.00.

It is worth noting that the 20- and 50-period Exponential Moving Averages (EMAs) have given a bullish crossover at 122.10, which adds to the upside filters. However, the Relative Strength Index (RSI) has shifted in the 40.00-60.00 range, which signals that the greenback bulls have lost momentum.

Should the asset surpass the Darvas box high at 123.00, a swift move will be observed towards March 29 high at 124.30, followed by a six-year high at 125.10.

On the contrary, if the asset drop below the Darvas box low at 121.33, yen bulls will send the major towards the round level support at 120.00. Breach of the latter will drag the major toward the March 18 low at 119.08.

USD/JPY hourly chart