During the previous trading session, the USD/JPY currency pair reached the upper boundary of the short-term descending channel at 111.66.
From a theoretical point of view, it is likely, that the pair reverses south and targets the lower channel line. Important support level to look out for is the weekly S1 located at the 111.18.
However, note, that the exchange rate is squeezed by the 55– and 200-hour SMAs, currently located at 111.42 and 111.70 respectively. If the given moving averages hold, it is expected, that the rate could trade sideways in the short run.
