• A consolidation above the 200-EMA adds to the upside filters.
• The RSI (14) is oscillating in a 40.00-60.00 range and awaits a potential trigger.
• For more upside, the greenback bulls need to break above the 134.34-135.58 range decisively.

The USD/JPY pair has witnessed mild selling pressure after printing an intraday high of 135.24 in the Asian session. The asset is walking northwards briskly to recapture its two-week high at 135.58. However, a slower upside move signals exhaustion and could trigger downside momentum at any time.

Movement in a marked territory for the past three trading sessions is indicating the unavailability of a potential trigger for a decisive move. The asset is oscillating in a 134.34-135.58 range and is likely to remain lackluster till the announcement of the US Consumer Price Index (CPI) data.

The asset is comfortably established above the 200-period Exponential Moving Average (EMA) at 135.58, which adds to the upside filters. Also, the 50-EMA at 134.90 is advancing higher, which warrants a bullish short-term scenario.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range and advocates a wait and watch approach.

A decisive break above Monday’s high at 135.58 will drive the asset towards July 26 high at 136.27, followed by the round-level resistance at 137.00.

On the contrary, the yen bulls could regain control if the asset drops below Friday’s low at 132.52. An occurrence of the same will drag the asset towards the August 1 low at 131.60 and the August 2 low at 130.39.

USD/JPY hourly chart