On Wednesday, the US Dollar declined by 50 pips or 0.45% against the Japanese Yen. A breakout occurred through the lower boundary of an ascending channel pattern during yesterday’s trading session.
Given that a breakout has occurred, bearish traders are likely to continue to drive the exchange rate lower during the following trading session. The potential target for sellers would be near the support cluster at 109.85.
However, the 100– hour simple moving average at 110.32 could provide support for the currency exchange rate in the shorter term.
