USDJPY wedge unfolding
The US dollar is back under pressure against the Japanese yen currency after the pair suffered a strong technical rejection from the 106.20 area. Lower time frame analysis shows that the USDJPY pair is trapped within a large falling wedge pattern between the 104.80 to 106.40 level. Failure to overcome the 106.40 level this week could see the USDJPY pair falling towards the bottom of the wedge pattern.
The USDJPY pair is only bullish while trading above the 106.00 level, key resistance is found at the 106.50 and 106.80 levels.
The USDJPY pair is only bearish while trading below the 106.00 level, key support is found at the 105.20 and 104.80 levels.