Yesterday, the USD/JPY currency pair traded sideways at the weekly PP at 107.69. During Tuesday morning, the pair breached the short-term ascending channel south.
Note that the exchange rate is under pressure of the 55– and 100-hour SMAs near 107.70. Thus, some downside potential could prevail, and the rate could target the psychological level at 107.00.
On the other hand, the currency pair could reverse north from the psychological level at 107.20 and try to exceed the given moving averages, as well the weekly PP.
