Yesterday, the USD/JPY currency pair reached the upper boundary of the short-term ascending channel at 107.95. During Thursday morning, the pair declined to 107.70.
From a theoretical perspective, it is likely that some downside potential could prevail in the market, and the exchange rate could reach the lower channel line circa 107.50.
Meanwhile, note that the rate could gain support from the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs in the 107.60/107.69 range. If the given support holds, it is likely that the pair could consolidate.
