USD/JPY Technical Analysis: Retreats to 111.00, rising wedge on the hourly chart

USD/JPY has pulled back to 111, having hit a high of 111.18 earlier today, possibly on the back of risk-on in equities and the drop in the haven demand for the Japanese yen.

On the hourly chart, the pair seems to have created a rising wedge pattern - a bearish reversal setup. A break below the lower edge of the wedge, currently at 110.89, would confirm the rising wedge breakdown and allow a deeper drop to 110.53.

That said, the rising wedge breakout looks unlikely or may end up trapping sellers on the wrong side of the market if the European equities track Asian stock higher. 

Hourly chart

Trend: Bearish below 110.89