On Friday, the USD/JPY currency pair tested the upper boundary of the rising wedge pattern at 108.20. During today’s morning, the pair reversed north from the lower pattern line at 107.80.
From a theoretical point of view, it is likely that the US Dollar could continue to appreciate against the Japanese Yen within the given pattern. Note that the upper wedge line is located in the 108.25/108.35 area.
It is unlikely that bears could prevail in the market, and the exchange rate could breach the given pattern south due to the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 107.67/107.82 range.
