On Monday, the USD/JPY currency pair reversed north form the upper boundary of the long-term descending channel at 105.68. During today’s morning, the pair was resting the resistance formed by the monthly S2 and the 55-hour SMA at 106.54.
If the given resistance holds, it is likely, that the exchange rate could trade sideways between the given resistance and the lower channel line in the short run. It is unlikely, that a breakout south could occur, as the rate is supported by the weekly S1 at 105.64.
It is unlikely, that some upside potential could prevail in the market, as the pair is pressured by the Fibonacci 23.60% retracement and the 100-hour SMA, located at 107.02 and 107.31 respectively.
