During the previous trading session, the USD/JPY currency pair breached the medium-term descending channel north. During today’s morning, the pair was trading near the upper boundary of the short-term ascending channel at 108.60.
From a theoretical point of view, it is expected, that the exchange rate could reverse south from the given line in the nearest future. A possible downside target could be the support level—the weekly PP at 108.22.
On the other hand, the rate could trade sideways around the Fibonacci 38.20% retracement located at the 108.44 mark in the short term.
It is unlikely, that some upside potential could prevail in the market, and the pair could breach the given channel north.
