USDJPY (113.16): The USDJPY is showing sign of weakness as price action is currently seen hovering near the lower trend line of the rising wedge pattern. This pattern formed on the daily chart signals a possible downside price action. Support is seen at 110.70 which could be the likely target. On the 4-hour chart, USDJPY touched down to the support level at 113.00 briefly. We expect to see a modest rebound off this level as USDJPY remains flat within 114.00 and 113.00 price levels. A breakout to the downside below 113.00 will signal a move to the next support at 112.00 ahead of further declines that can be expected towards 110.70.
