Yesterday, the USD/JPY currency pair traded sideways at the 108.00 level. During Friday morning, the pair was testing the lower boundary of the short-term ascending channel at 107.90.
From a theoretical point of view, it is likely that a reversal north could occur in the nearest future. Note that the exchange rate has to surpass the resistance formed by the 55– and 100-hour SMAs, currently located at 108.09.
If the given resistance level holds, it is likely that the US Dollar could continue to trade sideways against the Japanese Yen, supported by the 200-hour moving average, currently located at 107.95.
