Yesterday, the USD/JPY currency pair advanced and reached the 108.20 level. During Tuesday morning, the pair tested the upper boundary of the rising wedge pattern at 108.40.
From a theoretical point of view, it is likely that the US Dollar consolidate against the Japanese Yen within the given pattern. It is unlikely that a breakout south could occur due to the support formed by the 55-hour SMA at 108.03.
However, if the given support does not hold, it is likely that the exchange rate could decline to the support cluster formed by the 100– and 200-hour SMAs, as well the weekly PP in the 107.71/107.87 range.
