The USD/JPY pair’s attempts to recover were limited by the descending channel’s resistance line. The exchange rate bounced back from this down-trend and is now expected to keep moving lower. The channel’s lower boundary is located only near 108.00, meaning that the Greenback has a lot of room to keep declining. Furthermore, the monthly S1 at 109.22 is a strong support, which could prevent the given pair from falling deeper down. Technical indicators, however, are unable to confirm the possibility of the negative outcome today, as they are giving mixed signals in all timeframes. No significant drops are likely to occur by the end of the week, as there are no scheduled fundamental events that could have such a bearish impact on the US Dollar. Price is expected to close near 110.65 today.
