Yesterday, the USD/JPY currency pair consolidated within the cluster formed by the monthly S2 and S3, located at 106.54 and 105.87 respectively. During Wednesday’s morning, the pair was still trading sideways.
Theoretically, it is unlikely, that some downside potential could occur, as the exchange rate is supported by the lower boundary of the long-term descending channel at 105.87.
Also, it is unlikely, that bulls could prevail in the market in the short run due to the resistance of the 100-hour SMA, currently located at 106.70.
If the given cluster holds, it is likely, that the pair could maintain its consolidation within the following trading session.
