On Tuesday, the USD/JPY currency pair broke the lower line of the short-term ascending channel. During today’s morning, the pair resumed to trade within the given pattern.
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 weekly R1 at 107.43.
Meanwhile, note that the currency pair is pressured by the 55-, 100– and 200-hour SMAs near 107.10. Also, the pair could gain support from the Fibo 38.20% at 106.86. Thus, it is likely that the rate could consolidate.
