On Thursday, the USD/JPY currency pair tried to surpass the resistance formed by the 55– and 100-hour SMAs, located circa 108.50. During today’s morning, the rate was testing the support formed by the 200-hour SMA at 108.28.
Given, that the exchange rate is squeezed by the given moving averages, it is likely, that it could trade sideways in the nearest future.
On the other hand, if the given resistance does not hold, it is expected, that the rate could target the psychological level at 108.80.
It is unlikely, that bears could prevail in the market, and the pair could drop lower than the 108.00 mark due to the lower boundary of the short-term ascending channel.
