On Tuesday, the USD/JPY currency pair continued to trade lower, but lost its momentum in the evening when the pair traded in a relatively narrow range. The US Dollar is gradually approaching the upper channel boundary which is being reinforced by the 55-hour SMA circa 112.30. Thus, it is likely that the pair continues to trade sideways ahead of US fundamentals at 1230GMT. In case of solid data, the Greenback should breach the channel and surge to the upside until the 100-hour SMA, at least. Meanwhile, the nearest support levels are set by the weekly S1 and the monthly PP at 111.70/111.39, accordingly. The former worked effectively at halting the pair yesterday; thus the same scenario may repeat today once again
