On Friday, the USD/JPY currency pair broke the lower line of the medium-term ascending channel. During today’s morning, the pair reversed north.
Given that the exchange rate is pressured by the 55-, 100– and 200-hour SMAs near 106.00, it is likely that some downside potential could prevail in the market. A possible downside target is the 105.20 level.
In the meantime, it is unlikely that bulls could prevail in the market in the nearest future, and the currency pair could exceed the weekly R1 located at the 106.48 mark.