On Wednesday, the USD/JPY currency pair breached the short-term descending channel. During today’s morning, the pair re-tested the weekly S1 at 108.03.
It is likely that the exchange rate could gain support from the 55– and 100-hour SMAs in the 107.40/107.70 area. Thus, some upside potential could prevail in the market.
However, note that the currency pair would have to surpass the resistance level formed by the Fibo 50.00% and the 200-hour SMA at 108.35. If the given level holds, it is likely that the pair could consolidate in the short run.
