On Wednesday, the USD/JPY exchange rate dropped to the weekly PP at 105.88. During today’s morning, the rate was testing the monthly PP at 106.09.
Given that the currency pair is pressured by the 55-hour moving average near 106.20, it is likely that some downside potential could prevail in the market. Note that the pair could gain support from the lower line of the medium-term ascending channel circa 105.60.
In the meantime, if the weekly PP holds, it is likely that the US Dollar could trade sideways against the Japanese Yen within the following trading session
