During the previous trading session, the USD/JPY currency pair reached the upper boundary of the short-term descending channel at 107.45. During Wednesday’s trading session, the pair was testing the given line.
From a theoretical point of view, it is likely, that a reversal south could occur in the short term, and the exchange rate could target the lower channel line located circa the 106.70 mark.
However, note, that the rate is supported by the 55– and 100-hour SMAs, currently located circa 107.30. Thus, if the given channel does not hold, a breakout north could occur, and the pair could try to surpass the weekly PP at 107.70.
