• A responsive buying action has pushed the asset back into the Rising Channel formation.
• The 20- and 50-period EMAs have displayed a bull cross, which adds to the upside filters.
• A decisive move above 60.00 by the RSI (14) will strengthen the greenback bulls.

The USD/JPY pair has witnessed a minor correction after failing to overstep Friday’s high at 135.42. The pair is oscillating marginally below 135.00 and a balancing market profile is required to prepare a base for an upside rally.

On an hourly scale, the major has shifted into the Rising Channel chart formation again after a downside break. The upper portion of the above-mentioned chart pattern is placed from June 8 high at 134.48 while the lower portion is plotted from June 9 low at 133.19. A responsive buying action has pushed the asset back into the above-mentioned chart pattern, which signals that the yen bulls are no longer firmer.

The 20- and 50-period Exponential Moving Averages (EMAs) have given a bullish crossover at 133.70, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped into a 40.00-60.00 range but is expected to rebound again strongly.

Should the asset oversteps Thursday’s high at 134.68, the greenback bulls will negate the Rising Channel’s breakdown, which will empower them to recapture a two-decade high at 135.60. A breach of the latter will expose the asset to record a fresh two-decade high to near 5 October 1998 high at 136.06.

Alternatively, the yen bulls could regain strength if the asset drops below Friday’s low at 132.18. This will drag the asset towards Thursday’s low at 131.50, followed by June 6 low at 130.43.

USD/JPY hourly chart