Yesterday, the USD/JPY currency pair tried to surpass the 107.40 level. During Tuesday morning, the pair exceeded this level.
From a theoretical point of view, it is likely that the exchange rate could trade upwards within the rising wedge pattern. Note that the rate would have to surpass the resistance formed by the monthly PP and the weekly R1 in the 107.65 area.
If the given resistance holds, it is likely that the US Dollar could consolidate against the Japanese Yen within the following trading session.
Also, it is unlikely that bears could prevail in the market, and the rate could decline below the 107.14/107.26 area due to the support formed by the 55– and 100-hour SMAs, as well the weekly PP.
