USD/JPY is set to finish the week with gains

The USD/JPY pair is maintaining mixed trading as Japanese intervention in the forex markets is underway. The pair is neutral, but a break below 143.00 could pave the way toward 142.99.

The USD/JPY slumps for the second day in the week after falling short of testing the YTD high at 144.99, but fears of Japanese intervention in the FX markets to bolster the yen kept USD buyers at bay, while the major dipped towards the 143.00 handle. The USD/JPY is trading at 142.98 after hitting a daily high at 143.69, down by 0.30%.

The USD/JPY daily chart portrays the pair consolidating in the 140.00-144.99 area for the last couple of weeks. USD/JPY price action is overextended to the upside, while the Relative Strength Index, exited from overbought conditions, crossed below its 7-day RSI’s SMA, meaning sellers begin to gather momentum. However, if USD/JPY sellers want to regain control, they need a decisive break below the 20-day EMA at 140.64.