On Tuesday, the USD/JPY currency pair revealed a short-term ascending channel. During today’s morning, the pair reversed north from the lower channel line.
From a theoretical point of view, it is likely that some upside potential could prevail in the market, and the exchange rate could target the upper channel line located circa 107.95.
Meanwhile, it is unlikely that some downside potential could prevail in the market due to the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs in the 107.55/107.66 range.
