On Tuesday, the USD/JPY currency pair revealed a short-term descending channel. During today’s morning, the pair reversed north from the lower channel line.
It is likely that the exchange rate could remain under pressure of the 55-hour SMA near 107.50 and trade downwards in the short term. In this case the rate could gain support from the Fibo 38.20% and the weekly S3 at 106.86.
If the given support level holds, it is likely that the US Dollar could trade sideways against the Japanese Yen within the following trading session in the short run
