During the previous trading session, the USD/JPY currency pair reversed north from the 111.30 level. During today’s morning, the pair was trading near the upper boundary of the short-term descending channel at 111.60.
It is unlikely, that a breakout north from the channel could occur in the nearest future due to the resistance level formed by a combination of the 55– and 100-hour SMAs, as well the monthly PP at 111.55.
It is expected, that the exchange rate reverses south from the given channel line and targets the weekly S1 at 111.18.
However, if the given resistance does not hold, the rate could jump to the weekly PP and the 200-hour SMA at 111.79.
