Yesterday, the USD/JPY currency pair skyrocketed to the weekly R1 at 109.17. During Thursday morning, the pair raised to the monthly R1 at 109.47.
From a theoretical point of view, it is likely that the exchange rate could reverse south from the upper boundary of the long-term descending channel at 109.60. In this case the rate could decline to the support formed by the 55– and 200-hour SMAs at 108.70.
On the other hand, the US Dollar could trade sideways against the Japanese Yen in the short run, as the currency pair could gain support of the weekly R1. Also, it is unlikely that the pair could breach the given channel north due to the resistance level—the Fibo 50.00% at 109.58.
