Dollar-yen is on an amazing ride, fueled by the destructive policies set forth by the Bank of Japan. Nevertheless, the run-up since Oct
. 31 has seen its share of pullbacks; and, if price action closes below the wedge
ascending support, the pair will likely test minor support levels at 117.75 and 117. However, it would be constructive for dollar-yen to pullback at test the 23.6% retracement level from the Halloween uptrend in order to test lower support levels.
Once lower supports are tested, USDJPY
could easily push through resistance just over 119.
In the more bullish
support could hold on a stronger dollar. Trading into the apex of the wedge
could uncoil price action to 120.