USD/JPY PRICE ANALYSIS: SIX-WEEK-OLD RISING CHANNEL DEFENDS BULLS ABOVE 130.00

• USD/JPY remains sidelined, mildly offered, inside a bullish chart pattern.
• Steady RSI, successful trading beyond 100-SMA keeps buyers hopeful.
• 131.25-35 appears a tough nut to crack for bulls.

Unlike other currency major pairs, USD/JPY fails to cheer DXY pullback as it treads water around 130.40 during the mid-Asian session on Wednesday. Even so, an upward slopping trend channel since late March joins steady RSI to defend the pair’s buyers.

That said, the current recovery moves from the channel’s support eye to a two-week-long horizontal resistance area surrounding 131.25-35.

Should the USD/JPY bulls manage to cross the 131.35 hurdle, the 132.00 round figure may offer an intermediate halt during the pair’s rally targeting the stated channel’s upper line, close to 133.35 of late.

Alternatively, a downside break of 130.00 level, comprising the channel support, will need validation from the 129.35-30 area, including the 100-SMA and April 19 peak, to convince the USD/INR sellers.

Following that, a downward trajectory towards the late April lows near 127.00 can’t be ruled out.

USD/JPY: FOUR-HOUR CHART