The US Dollar failed to climb above the 110.00 resistance against the Japanese Yen. As a result, the USD/JPY pair started a fresh decline below the 109.50 support zone.
The pair even traded below the 109.20 support and settled below the 50 hourly simple moving average. It traded as low as 108.82 and it is now consolidating losses.
On the upside, there is a key barrier forming near 109.10 on FXOpen. There is also a major declining channel forming with resistance near 109.05 on the hourly chart. If there is an upside break above the channel, the pair could rise towards the 109.50 resistance.
If there is no upside break above the channel, the pair could continue to move down. An initial support on the downside is near the 108.80 level, below which USD/JPY might drop towards the 108.00 support.
