During the previous trading session, the USD/JPY currency pair tested the lower boundary of the long-term descending channel at 105.85. During Friday morning, the pair continued to test the given channel line.
Note, that the exchange rate is pressured by the 55– and 100-hour moving averages, currently located circa 106.10. Thus, if the given channel does not hold, it is expected, that bears could prevail in the market. However, the rate has to surpass the support level—the weekly S1 at 105.64.
If the given channel does not hold, the pair could maintain its consolidation in the nearest future. It is unlikely, that a reversal north could occur in the short run, and the rate could exceed the monthly S2 at 106.54.
