USD/JPY has managed to maintain its sideways movement for the fourth session in a row.
Despite being restricted by the 55– and 100-hour SMAs, the US Dollar breached this support and edged slightly higher on Tuesday. However, a surge did not follow, as the pair had already been pushed back to the 107.00 mark by Wednesday morning.
The rate is moving closer to the bottom boundary of a three-week channel up. Given its inability to reach the upper line of this pattern last week, it is likely that a bearish breakout occurs soon and thus sends the pair towards 106.00 during the following days.
However, technical indicators are still bullish for this session, demonstrating that a test of the weekly R1 or the 38.20% Fibo circa 107.80 and 108.00 is the most likely scenario.
