The USD/JPY has broken an ascending channel pattern by trading sideways. Namely, it has remained between a pivot point at 109.47 and the resistance of a 50.00% Fibonacci retracement level at 109.58.
The rate is expected to remain between these levels until the support of the 55-hour simple moving average approaches the pair. The SMA could push the rate higher and force it into breaking the resistance of the 50.00% Fibo.
USD/JPY short-term daily review
From the one hand, the exchange rate could reverse south in the nearest future. In this case the rate would have to surpass the monthly R1 at 109.39.Hourly Chart
On Friday, 70% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders were to sell. In the 100-pip range 87% of pending orders were to sell and 13% were to buy.
It could be assumed that traders are expecting a reversal after the surge that has occurred since November 20.