On Friday, the USD/JPY currency pair breached the long-term descending channel south. During Monday’s morning, some downside potential still was prevailing in the market.
Given, that the exchange rate is pressured by the 55– and 100-hour mobbing averages, currently located circa 105.90, it is expected, that bears could prevail in the market in the short term. A possible downside target is the 2018/2019 low at 104.67.
However, note, that the rate has to surpass the support level formed by the weekly S1 at 104.96. If the given level holds, a reversal north could occur. It is unlikely, that the pair could exceed the monthly S3 at 105.87.
