The US Dollar is showing positive signs above the 105.50 pivot level against the Japanese Yen. The USD/JPY pair traded above the 106.50 resistance level to move into a positive zone.
Moreover, there was a break above the 107.20 level and the pair settled above the 50 hourly simple moving average. It traded as high as 107.85 on FXOpen and it is currently correcting lower.
It seems like there is an ascending channel forming with support near 107.10 on the hourly chart. If there is a downside break, the pair could test the 106.50 support, the 50 hourly SMA, and the 50% Fib retracement level of the upward move from the 105.14 low to 107.85 high.
On the upside, an initial resistance is near the 107.50 level, above which USD/JPY is likely to rise towards the 108.00 resistance area in the coming sessions.
