On Monday, the USD/JPY currency pair went upwards and reached the upper boundary of the short-term ascending channel at 110.20. During today’s morning, the pair was testing the given line.
From a theoretical perspective, it is expected, that a reversal north could occur in the nearest future. In this case, the exchange rate would be supported by the 55-hour SMA and the monthly S2 at 109.97.
However, if the given channel does not hold, a breakout north could occur in the following hours. The pair could surpass the 110.40 level. Note, that the nearest resistance level is the weekly R1 at 110.51