On Thursday, the USD/JPY currency pair broke the upper line of a newly revealed falling wedge pattern. During today’s morning, the pair was testing the support formed by the 55– and 100-hour SMAs, as well the weekly PP in the 107.10 area.
If the given support holds, it is likely that some upside potential could prevail in the market, and the exchange rate could try to exceed the 107.40 level.
Meanwhile, note that the rate is pressured by the 200-hour SMA near 107.20. Thus, some downside potential could prevail in the market, and the pair could target the Fibo 38.20% at 106.86.
