Yesterday, the USD/JPY currency pair exceeded the weekly R1 at 109.07. During Wednesday morning, the pair was trading near the 109.20 level.
Note that the exchange rate has been trading within the ascending channel since last Thursday. Thus, it is likely that some upside potential could continue to prevail in the market, and the rate could target the monthly R1 at 109.39.
It is unlikely that some downside potential could prevail in the market, and the currency pair could tumble due to the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 108.67/109.00 range
