Yesterday, the US Dollar appreciated slightly against the Japanese Yen. During Tuesday, the USD/JPY currency pair was trading at the 107.60 mark.
Given that the exchange rate is trading near the upper boundary of the short-term descending channel, it is likely that some downside potential could prevail in the market. However, note that the rate has to surpass the psychological level at 107.40.
If the given level holds, it is likely that a breakout north could occur in the nearest future. However, it is unlikely that the pair could exceed 108.85/108.95 due to the resistance formed by the 100- and 200-hour SMAs, as well the weekly PP.
