The USD/JPY currency pair continues to face pressure today for the second consecutive day after reaching this year's high (YTD), correcting around 145.50 on Friday morning in Europe.
 
This is happening as market participants look for further clues in a sluggish weekend atmosphere. Despite confirming technical aspects, the Yen pair still faces challenges from recent volatility due to traders preparing for speeches from central bank leaders next week at the Jackson Hole Symposium.
 
However, optimism from Japan's Consumer Price Index (CPI) data released for July has also had a positive impact, even though the chart formation has shown a bearish rising wedge over the past three weeks. Additionally, the decline in U.S. Treasury yields has contributed to attracting USD/JPY sellers.
 
Furthermore, the correction in the RSI (14) line from the overbought zone, combined with negative indications from the MACD, helps maintain sellers' hopes.
 
Nonetheless, the horizontal area consisting of several levels recognized since late June, ranging from 145.10 to 144.90, presents a challenge for a direct decline in the Yen currency pair.
 
Moving forward, the 200 SMA located around 142.00 and the round level of 140.00 will be the last strongholds relied upon by USD/JPY buyers before the price moves toward the theoretical target of the confirmed bullish pattern, which is near 137.50.
 
Alternatively, for USD/JPY buyers to take control, they must overcome the bearish rising wedge pattern by breaking through the upper line of the pattern, which is near 146.90. At the same time, the round level of 147.00 also serves as an upper filter.
 
Warning!
 
This analysis is based on fundamental and technical views from trusted sources and is not intended as advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct your own research on other forex information as a reference for your trading.
 
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