• A time-wise correction in the asset seems done around the confluence of 50-EMA and trendline at 123.70.
• The pair has displayed a bearish open test-drive drive session in early Tokyo.
• A surpass of 60.00 by the RSI (14) may set a bullish stage for the major.

The USD/JPY pair looks to move out of the woods after witnessing a time-wise correction to near 123.67. The pair has been oscillating in a narrow range of 123.46-124.05 from the previous three trading sessions. In early Tokyo, the asset has displayed a bearish open test-drive session. The asset opened at 123.97 and made a high of 124.23. Later, it failed to sustain at higher levels and dragged below the opening price to a low of 123.67.

On an hourly scale, USD/JPY has attracted bids amid the confluence cushion of the 50-period Exponential Moving Average (EMA) and the trendline to near 123.70. The trendline has placed from March 31 low at 121.30, adjoining the April 5 low at 122.38.

The asset has comfortably established above the 200-period EMA at 122.88, which favors a bullish bias in the counter.

However, the Relative Strength Index (RSI) (14) has slipped into the 40.00-60.00 range, which indicates consolidation going forward. For a strong upside move, the RSI (14) needs to violate 60.00 decisively.

For an upside, the greenback bulls need to overstep Thursday’s high at 124.23, which will send the asset towards the six-year high at 125.10, followed by the round level resistance at 126.00.

On the contrary, yen bulls may dictate the asset if it drops below the 200-EMA at 122.88. A slippage below the 200-EMA will send the asset towards the April 5 and March 31 low at 122.38 and 121.30 respectively.

USD/JPY hourly chart