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Technical Analysis: USDJPY prints mild gains inside short-term rising wedge

Despite staying above 200-bar SMA, USDJPY stays inside a bearish technical chart pattern, rising wedge, on the four-hour (H4) chart. While the pair's sustained trading above key SMA portrays its strength to question the formation resistance around 108.00, mid-April highs surrounding 108.10 could challenge the quote's additional run-up. It should, however, be noted that the pair's rise past-108.10 enables it to challenge the April month top nearing 109.40.

Meanwhile, 107.40 becomes the crucial support as 200-bar SMA joins the bearish pattern's lower line at that point. If at all the pair drops below 107.40, it becomes vulnerable, theoretically, to drop around 105.40/30. Though, the previous week's low near 106.70 and the current monthly low close to 106.00 can offer intermediate halts during the fall.

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