As apparent on the chart, the USD/JPY exchange rate remained stable on Friday and fluctuated in a narrow range between the 50.0% Fibonacci retracement and the 100– and 200-hour simple moving averages.
The pair did breach the bottom boundary of an eight-week channel; thus, the current dominant pattern has become a symmetrical triangle. In line with this pattern, the Greenback should test its bottom line at 109.00 prior to reversing to the upside once again. This scenario is likely due to the strong resistance at 109.40. This expected fall might even exceed the triangle and could be limited solely by the weekly S1 at 108.80.
On the other hand, a breakout of 109.45 would confirm the strong bullish sentiment that is likely to guide the US Dollar higher for a few sessions.
