During previous trading session, the USD/JPY currency pair tried to breach the short-term descending channel north.
Given that the pair is pressured by the 55-, 100– and 200-hour SMAs, currently located in the 111.89/111.94 range, it is likely, that some downside potential prevails in the market. However, the pair has to surpass the weekly S1 at 111.78.
If the given support and resistance hold, it is expected, that the exchange rate trades sideways in the nearest future. Also, it is unlikely, that the rate could breach the given channel north in the short term due to the resistance level –the monthly PP at 111.97
