On Tuesday, the USD/JPY currency pair revealed a short-term descending channel. During today’s morning, the pair was trading near the lower channel line at 107.70.
From a theoretical perspective, it is likely that some downside potential could prevail in the market, and the exchange rate could re-test the lower channel line near 107.25.
If the given channel holds, it is likely that a reversal north could follow. Otherwise, it is likely that the currency pair could target the psychological level at 107.00.
