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.
