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.