USD/JPY Technical Analysis: Cross-driven strength, teasing falling wedge breakout

• The 100-pip jump in the EUR/JPY seems to have lifted the USD/JPY pair to a session high of 111.84.
• Italy is considering bringing down its fiscal deficit to 2 percent of GDP in 2021, a local newspaper reported earlier today. The news has put a bid under the EUR.
• The USD/JPY is currently trading above the upper edge of the falling wedge seen in the hourly chart. A bull breakout, if confirmed, would open add credence to ascending (bullish) 5-day and 10-day exponential moving averages (MAs) and would open up upside toward the November 2017 low of 111.74.

Hourly Chart

Spot Rate: 113.78

Daily High: 111.84

Daily Low: 1113.52

Trend: Bullish

Resistance

R1: 113.90 (resistance of Oct. 2 high on the hourly chart)

R2: 114.06 (Oct. 1 high)

R3: 114.74 (November high)

Support

S1: 113.72 (50-hour EMA)

S2: 113.52 (session low)

S3: 113.00 (psychological level)