Yesterday, the USD/JPY currency pair breached the short-term descending channel north. During Tuesday’s morning, the pair reached the resistance level formed by the 200-hour SMA and the weekly PP at 109.75.
If the given resistance holds, it is expected, that a reversal south could occur in the nearest future. Note, that the exchange rate has to surpass the support level—the Fibonacci 50.00% retracement at 109.58.
If the given support does not hold, it is likely, that the rate could decline to the support level formed by a combination of the 55– and 100-hour SMAs, currently located circa 109.48.
