Morning outlook - USD/JPY encounters combined resistance
- As it was expected, the new trading week the Greenback started in a recovery against the Yen.
- A breakout near the 107.40 mark suggests that the pair is moving in a new junior descending channel.
- If this assumption is correct, the buck is expected to try to surge towards the monthly PP at 109.76.
- Yet this target might not be reached from the first attempt, as road to the north is obstructed by a combined resistance level that consists of the weekly PP, the monthly S1 as well as the 55- and 100-hour SMAs.
- From a daily perspective, this barrier also seems too strong to be crossed. In other words, a new descending channel on a larger timeframe points out that the fourth rebound is expected to follow.
