Red lines -wedge pattern
USDJPY is trading around 131.80. Over the last few sessions and specially after the announcement of the non-Farm Payrolls last Friday, price has been under pressure and has formed an important high at 134.79. Price has broken above the wedge pattern and the resistance of the upper downward sloping trend line. Price is now back testing the upper wedge boundary from above. So far price has made a low at 131.32 where we also find the 61.8% Fibonacci retracement of the rise from 129.53 to 134.79. Short-term support is at 131.32. A break below this level will increase the chances of seeing a new weekly lower low below 129.53 towards 128.50. If bulls manage to form a higher low around 131.50-131, then we could start talking about possible upside reversal scenarios.
