The US Dollar has been trading in a narrow channel down against the Japanese Yen since May 2. This channel is being considered as a temporary retracement from the upper border of a dominant pattern.
After reaching the lower boundary of the dominant ascending channel, the currency pair began to appreciate. As a result, the pair has breached the 50.00% Fibonacci retracement level.
The USD/JPY currency exchange rate is likely to continue moving north until it encounters a resistance level set by either the 200– hour SMA or the 100– hour simple moving average.
