During last week, the USD/JPY currency pair revealed a short-term ascending channel. During Monday morning, the pair tested the upper channel line circa 107.50.
It is likely that the exchange rate could gain support from the 55-, 100– and 200-hour SMAs in the 107.20 area. Thus, a reversal north could occur, and the rate could re-test the upper channel line.
Meanwhile, it is unlikely that a breakout north could as the currency pair could face the resistance level formed by the weekly R1 at 107.43. Thus, it is likely that the pair could consolidate.
