Yesterday, the USD/JPY currency pair re-tested the upper line of the rising wedge pattern at 108.00. During Wednesday morning, the pair reversed south.
From a theoretical point of view, it is likely that the exchange rate could re-test the lower pattern line in the 107.45 area in the nearest future. If the given pattern holds, a reversal north could follow.
Meanwhile, note that the currency pair could face the support from the monthly PP at 107.64. Thus, a reversal north could occur sooner, and the pair could continue to trade upwards within the given pattern in the short run.
