• Formation of the symmetrical triangle is indicating a contraction in volatility and volumes going forward.
• A bull cross of 20- and 50-period EMAs is intact.
• The greenback bulls need to explode the symmetrical triangle for an upside move.

The USD/JPY pair seems losing the interest of the market participants and is trading lackluster since the first trading session of April. After a steep fall from its six-year high at 125.10 on March 28, the major is inside the woods.

On an hourly scale, USD/JPY is oscillating in a symmetrical triangle that signals indecisiveness in the sentiment of the market participants. Usually, a symmetrical triangle denotes volatility contraction and volume squeeze. The pair is juggling in a narrow range of 122.26-123.04 from the last three trading sessions.

The 200-period Exponential Moving Average (EMA), which is trading near the round level figure of 122.00 has acted as major support earlier. Adding to that, the 20- and 50-period EMAs are continued with their bull cross despite the range-bound move in the asset.

The Relative Strength Index (RSI) (14) has shifted into a 40.00-60.00 range from the bullish range of 60.00-80.00, which signals back and forth moves going forward.

A breakout of the symmetrical triangle above 123.00 will be followed by a swift move, which will send the asset towards the March 29 high at 124.30. A breach of the latter will drive the greenback bulls to a six-year high at 125.10.

On the contrary, yen bulls may strengthen on breaking of the symmetrical triangle at 121.33, which will drag the major towards the round level support at 120.00, followed by the March 18 low at 119.08.

USD/JPY hourly chart