On Wednesday, the USD/JPY currency pair breached the falling wedge pattern north and jumped to 104.40.
It is likely that the exchange rate could gain support from the support level—the weekly R1 at 104.18. Thus, the rate could extend gains in the short term and target the psychological level at 104.80.
Meanwhile, note that the currency pair would have to exceed the resistance level—the weekly R2 at 104.51. If the given resistance holds, the pair could bounce off to the support area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 103.75/103.90 range.
