• A responsive buying action around 143.50 has underpinned the greenback bulls.
• The fakeout action call for a sheer movement at the opposite.
• The momentum oscillator (RSI) (14) bounced firmly after dragging to near 40.00.

The USD/JPY pair has turned sideways around 144.20 after witnessing a responsive buying action from 143.60 as the US dollar index (DXY) has rebounded. The DXY has picked bids around 110.20 and is aiming to extend recovery above 110.47. S&P500 futures have dropped more than 0.5% as the risk profile has soured a bit after remaining extremely positive.

On a four-hour scale, the asset is oscillating in a 143.90-145.35 range for the past two weeks. It is worth noting that the greenback bulls have defended the downside break of the consolidation. This could be considered a fake break which results in a sheer performance at the opposite.

The asset is oscillating minutely below the 20-and 50-period Exponential Moving Averages (EMAs) at 144.43 and 144.28, which doesn’t indicate a bearish reversal for now.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which supports the sideways movement. One thing is worth mentioning is that the momentum oscillator has sensed demand at 40.00, which indicates the availability of significant bids on lower levels.

The greenback bulls could drive the asset higher after overstepping September 22 high at 145.90, which will drive the asset towards August 1998 high at 147.67. A breach of the latter will send the major towards the psychological resistance of 150.00.

For a decisive bearish reversal, the asset is required to drop below September 22 low at 140.35. An occurrence of the same will drag the asset towards the August 30 low at 138.05 followed by the August 23 low at 135.81.

USD/JPY four-hour chart