USDJPY wedge unfolding
The US dollar is trading with a slight bearish bias against the Japanese yen currency, as risk-off trading sentiment comes back to the financial market. Short-term technical analysis shows that the USDJPY pair is currently trapped inside a bearish rising wedge pattern. Heavy USDJPY technical selling may take place if the price moves below the rising wedge, around the 106.60 support level.
The USDJPY pair is only bearish while trading below the 106.60 level, key support is found at the 106.20 and 105.80 levels.
The USDJPY pair is only bullish while trading above the 106.60 level, key resistance is found at the 106.90 and 107.10 levels.