During the previous trading session, the USD/JPY currency pair reached the upper boundary of the short-term ascending channel at 108.57. During today’s morning, the pair was trading along the given line.
From a theoretical point of view, it is expected, that a reversal south could occur in the nearest future. Note, that the exchange rate has to surpass the Fibonacci 38.20% retracement at 108.44. Also, the rate could be supported by the 55– and 100-hour SMAs located circa 108.25.
On the other hand, the pair could continue to trade up along the upper channel line. It is unlikely, that a breakout north could occur, as the pair is pressured by the 200-hour SMA, currently located at 108.73.