During the previous trading session, the USD/JPY currency pair breached the falling wedge pattern north. During Monday morning, the pair surpassed the weekly R1 at 107.20.
It is likely that the exchange rate now could be supported by the weekly R1, thus, some upside potential could continue to prevail in the market. A possible upside target is the resistance level formed by the weekly R2 and the monthly PP at 107.65.
However, if the rate fails to surpass the 107.40 level, it is likely that a reversal south could occur in the nearest future. In this case the rate could gain support from the Fibo 38.20% at 106.86.
