On Thursday, the USD/JPY currency pair tested the lower line of the falling wedge pattern. During today’s morning, the pair breached the given pattern south.
It is unlikely that some upside potential could prevail in the market due to the resistance cluster formed by the 55– and 100-hour SMAs, as well the weekly R1 and monthly PP in the 107.58/107.71 range.
It is likely that the exchange rate could gain support from the 200-hour SMA near 107.40 and trade sideways. If the given support does not hold, the rate could decline to the weekly PP at 107.14.