The USD/JPY currency pair has revealed a short-term ascending channel. During Monday morning, the pair was trading near the lower channel line at 107.60.
From a theoretical perspective, it is likely that some upside potential could prevail in the market. However, note that the exchange rate would have to surpass the 200-hour SMA near 108.00.
If the given resistance holds, it is likely that the currency pair could consolidate, supported by the 100-hour SMA bear 107.60. Otherwise, the pair could raise to the resistance formed by the Fibo 50.00% and the weekly R1 in the 108.40 area.
