Following a breakout from the steep ascending channel, the bearish sentiment failed to take the upper hand and push USD/JPY down to the 100-hour SMA and the breached wedge line near 108.75. Instead, the pair kept its position slightly above the 50.0% Fibo retracement and the weekly R3 at 109.10 on Thursday and early on Friday.
The slight tendency southwards should be maintained during the first part of the session, are bulls are gradually giving up their strong positions. Thus, the rate is likely to reach the aforementioned 108.80 area or fall even lower down to the weekly R2 at 108.50.
The remaining part of this trading day and week should be guided by the US GDP release at 1230GMT. In terms of upside potential, the Greenback could be limited by the 110.00 level.
