On Friday, the USD/JPY currency pair jumped to the 108.55 level. During Monday’s morning, the pair was testing the psychological level at 108.65.
From a theoretical perspective, bulls could prevail in the market in the short run, as the exchange rate has to target the upper boundary of the short-term ascending channel. In this case, the rate could reach the 108.75 mark.
From a technical point of view, it is unlikely, that the pair could go downwards because of the support cluster formed by a combination of the 55-, 100– and 200-hour SMAs, as well the weekly PP and the Fibonacci 38.20% retracement in the 108.41/108.51 range.
