On Tuesday, the USD/JPY currency pair declined to the lower boundary of the falling wedge pattern at 108.30. During today’s morning, the pair reversed north.
Given that the exchange rate is pressured by the 55-, 100– and 200-hour SMAs, it is likely that the rate could trade downwards within the given pattern in the nearest future.
It is unlikely that the currency pair could decline lower than the 108.28 mark, as it could be supported by the lower pattern line.
On the other hand, it is likely that the US Dollar could trade sideways against the Japanese Yen in the nearest future, trying to surpass the given resistance.
