• BoJ intervention prospects raise prospects for a bearish correction in USD/JPY.
• USD/JPY bears are lurking at resistance and eye a significant correction. 

USD/JPY edged higher on Wednesday with the US Dollar finding support ahead of a slew of key US events that included Wednesday's hawkish Federal Open Market Committee minutes that reinforced market expectations of another interest rate hike at the end of July. 

Most Fed officials expected that the policymakers would eventually need to tighten policy further.
As a consequence, the US Treasury yields moved higher and added to earlier gains in the Greenback. ''Fed funds futures showed expectations of a 25 basis point hike at the end of a two-day policy meeting on July 26 rose to 88.7%, according to CME Group's FedWatch Tool,'' Reuters reported. 

Indeed, USD/JPY has broadly moved higher in sync with the US 10-year Treasury yield. However, the market is also paying attention to the potential risk of intervention from the Bank of Japan. This opens the risk of a move lower in USD/JPY and the following illustrates a bearish technical scenario. 

USD/JPY monthly chart

The monthly W-formation is compelling. This is a reversion pattern and if there is resistance here, then there is the possibility of a retracement back to the neckline that meets the 61.8% Fibonacci near 134 the figure. 

USD/JPY weekly charts

On a weekly chart, this might play out as follows, allowing for the ebbs and flows on the way down as bears take on the dynamic trendline support towards 140.50 and 50 pips below the weekly 61.8% ratio near 141.50

(Overall bearish trajectory bias, resistance and support levels).

USD/JPY bullish weekly outlook

However, while on the front side of the trendline, the bulls are in charge and that leaves 145.10 and space to 152.00 technically up for grabs.