USD/JPY was trading along the upper boundary of a one-week channel up on Wednesday. The US Dollar managed to reach the 110.00 mark mid-session but was subsequently pushed lower. As a result, the pair breached a more senior ascending channel and the 55-hour SMA during the Asian session.
In case the current positioning below this moving average is maintained within the following hours, the Greenback should continue its bearish path either down to the 100– or 200-hour SMAs at 109.40 and 109.15, respectively.
Given that banks in Japan are closed in this session, the latter might not even be reached. Thus, the rate could remain stable and float between the weekly R1 and the 100-hour SMA in the 109.40/90 range.
