Yesterday, the USD/JPY currency pair exceeded the Fibo 38.20% at 108.44. During Thursday morning, the pair was testing the Fibo 50.00% at 109.58.
On the one hand, it is likely that the exchange rate could trade upwards within the medium-term ascending channel. In this case the rate could face the resistance level—the monthly R1 and the Fibo 61.80% at 110.72.
However, if the Fibo 50.00% holds, it is likely that the US Dollar could trade sideways against the Japanese Yen in the short run. Also, it is unlikely that bears could prevail, and the pair could breach the given channel south due to support of the 55-hour SMA.
