On Friday, the USD/JPY currency pair declined to the 107.40. During today’s morning, the pair broke to the lower boundary of the short-term descending channel.
On the one hand, the exchange rate could continue to trade downwards in the short term. In this case the rate could face the support level formed by the weekly S2, the monthly PP and the Fibo 38.20% at 106.85.
On the other hand, the currency pair could reverse north from the psychological level at 107.00. However, it is unlikely that the pair could exceed 107.60 due to the resistance formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP.
