The USD/JPY currency pair has revealed a short-term descending channel.
From a theoretical point of view, it is likely that the exchange rate could reverse south from the upper channel line in the short term. Note that the rate could decline to the support level—the weekly S1 at 103.42.
Meanwhile, note that the currency pair could gain support from the 55-, 100– and 200-hour SMAs, as well the 103.60/103.80 range. Thus, a breakout north could occur, and the pair could target the 104.10 mark.
