USDJPY Watching reversal pattern

The US dollar has reversed above the 103.00 level against the Japanese yen, following the release of much better-than-expected US factory data. Technical analysis shows that the main focus in the near-term is a bullish falling wedge pattern on the higher time frames. The pattern is warning that a much stronger bullish reversal could be about to take place in the USDJPY pair.

• The USDJPY pair is only bearish while trading below the 103.50 level, key support is found at the 102.30 and 101.00 levels.

• The USDJPY pair is only bullish while trading above the 103.50 level, key resistance is found at the 104.00 and 104.50 levels