#USDJPY @ 138.287 portrays bearish chart formation at the highest levels in six months., @nehcap view: Pullback expected (Pivot Orderbook analysis)

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• USD/JPY portrays bearish chart formation at the highest levels in six months.
• Downbeat MACD signals also lure Yen pair bears, 100-HMA, 200-HMA act as extra checks for sellers.
• Bulls need validation from 139.40 to retake control.

The pair currently trades last at 138.287.

The previous day high was 138.91 while the previous day low was 138.24. The daily 38.2% Fib levels comes at 138.5, expected to provide resistance. Similarly, the daily 61.8% fib level is at 138.66, expected to provide resistance.

USD/JPY grinds lower past 139.00, mildly offered near 138.40 heading into Wednesday’s European session.

The Yen pair rose to a fresh high since November 2022 before posting an unimpressive closing the previous day. In doing so, the major currency pair portrays a one-week-old rising wedge bearish chart formation.

Not only the bearish pattern but the downbeat MACD signals and failure to remain firmer at the multi-day high also lures the USD/JPY sellers.

However, the 100-Hour Moving Average (HMA) level of around 138.30 restricts the immediate downside of the Yen pair, a break of which highlights the stated wedge’s confirmation point, namely the lower line surrounding 138.00.

Following that, a quick fall towards the 200-HMA surrounding 137.20 can’t be ruled out. It should be noted, however, that the rising wedge confirmation hints at the 136.00 round figure as a theoretical target.

Alternatively, the stated wedge’s top line, close to the 139.00 round figure by the press time, restricts immediate USD/JPY recovery. Also likely to challenge the Yen pair buyers is the July 2022 high of near 139.40.

Even if the Yen pair manage to cross the 139.40 hurdle, the 140.00 round figure may prod the buyers.

Overall, USD/JPY bulls appear to run out of steam but the sellers wait for clear signals.

Trend: Pullback expected

Technical Levels: Supports and Resistances

USDJPY currently trading at 138.43 at the time of writing. Pair opened at 138.58 and is trading with a change of -0.11% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 136.03, 50 SMA 134.06, 100 SMA @ 133.29 and 200 SMA @ 137.17.

The previous day high was 138.91 while the previous day low was 138.24. The daily 38.2% Fib levels comes at 138.5, expected to provide resistance. Similarly, the daily 61.8% fib level is at 138.66, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 138.25, 137.91, 137.58
• Pivot resistance is noted at 138.91, 139.25, 139.58

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