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USD/JPY Tests Short-Term Channel

Yesterday, the USD/JPY currency pair tested the resistance level formed by the Fibonacci 38.205 retracement at 108.44. During Thursday morning, the pair was testing the lower boundary of the short-term ascending channel at 107.82.

From a theoretical point of view, it is likely that a reversal north could occur in the nearest future. However, note that the exchange rate has to surpass the resistance formed by the 55– and 100-hour SMAs located circa 108.10.

It is unlikely that a breakout south could occur, as the rate is supported by the 200-hour moving average, as well the weekly PP, located at 107.84 and 107.73 respectively.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Grouphttp://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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