It was already previously mentioned that the narrow surge in a channel up pattern can not continue on the USD/JPY charts. The US rate hike provided the needed volatility for the pattern to be broken.
On Thursday morning the rate was heading for the 200-hour simple moving average, which was located at the 112.50 mark. Meanwhile, the rate faced the resistance of the 55 and 100-hour simple moving averages respectively at 112.87 and 112.77.
Most likely the rate will be squeezed by these levels. Watch the rate until it makes a break out from the occurring squeeze either down to the 112.40 level or up to the 113.10 level.
