Yesterday, the USD/JPY currency pair reversed north from the lower boundary of the rising wedge pattern (4H time-frame chart). During Wednesday morning, the pair was testing the 100-hour SMA at 109.20.
From a theoretical perspective, it is likely that some upside potential could prevail in the market. In this case the exchange rate could target the monthly R1 located at 109.47.
However, if the given moving average holds, it is likely that the currency pair could re-test the lower pattern line. It is unlikely that a breakout south could occur due to the support formed by the weekly S1 and the monthly PP at 108.90.
