The USD/JPY pair attracts some dip-buying on Tuesday and climbs to the top boundary of a four-day-old trading range, around the 143.75 region during the first half of the European session.

The US dollar regains positive traction following an early slide to a one-week low and turns out to be a key factor pushing the USD/JPY pair higher for the second successive day. Expectations that the Fed will continue to tighten its monetary policy at a faster pace to tame inflation remain supportive of elevated US Treasury bond yields. This, in turn, continues to act as a tailwind for the greenback.

The USD/JPY is moving with a bullish bias, currently holding above the 143.50 support area. Above the next barrier is seen at 144.40. On the flip side, the 142.75/85 zone is the critical short-term support area.

From a technical perspective the pair looks like it is in the midst of unfolding a symetrical triangle, more clearly visible on the four hour chart, where it appears to be in the middle of forming wave D of a typical A-E five wave pattern. Triangles usually break in the direction of the broader trend, which suggests a bias to the upside. They are normally the penultimate move in a trend, suggesting the possibility that after the final breakout rally higher has peaked there is a risk the market may roll over and start a lengthier correction.

Apart from this, the broader market risk sentiment could further contribute to producing short-term trading opportunities around the major.

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