On Tuesday, the USD/JPY currency pair re-tested the lower boundary of the short-term descending channel at 107.00. During today’s morning, the pair was trading near 107.40.
Note that the exchange rate is pressured by the 55– and 100-hour SMAs, currently located at 107.45 and 107.65 respectively. Therefore, it is likely, that bears could prevail in the market in the short term. A possible downside target is the Fibo 23.60% at 107.02.
However, the currency pair could gain support of the weekly S1 at 107.21. If the given level holds, the possible decline might not be immediate. It is unlikely that the given channel does not hold, and the pair could exceed 107.85 due to the resistance formed by the 200-hour SMA and the weekly PP.
