Yesterday, the USD/JPY currency pair increased to the upper boundary of the short-term ascending channel at 109.60. During Thursday morning, the pair reversed south.
From a theoretical point of view, it is likely that the exchange rate could reverse south from the lower channel line in the nearest future and continue to extend gains. However, note that the rate would have to exceed the Fibo 50.00% at 109.58.
If the given resistance level holds, a breakout south from the given trend could occur. However, it is unlikely that the currency pair could tumble lower than the weekly R1 located at the 109.07 mark.
