During the previous trading session, the USD/JPY currency pair reversed from the upper boundary of the short-term ascending channel at 108.75. During today’s morning, the pair was testing the support level—the weekly PP at 108.22.
If the given support level holds, it is expected, that the exchange rate could reverse north. However, note, that the rate hs to surpass the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the Fibo 38.20% and the weekly R1 in the 108.36/108.61 range.
If the given support does not hold, it is likely, that a breakout south from the channel could occur soon. A possible downside target is the psychological level at the 108.00 mark.