The USD/JPY has broken the channel down pattern. Namely, the squeeze between the upper trend line of the pattern and the 50.00% Fibonacci retracement level at 108.35 ended with a break-out to the upside. By the middle of Friday’s trading, the rate was reaching for the weekly R1 at 109.23.
If the weekly R1 simple pivot point holds, the rate could trade sideways until it is approached and pushed up by the combination of the hourly simple pivot points. However, note that this is a weekly pivot point. It is bound to move to another level at the start of the next week.
On the other hand, the rate could pass the pivot point on Friday and reach for the resistance of the 109.83 level, where the 61.80% Fibonacci retracement level was located at.
