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.