The previous forecast worked, and the USD/JPY currency pair traded down. During Tuesday’s morning, the pair reached the psychological level at 111.40.
Given that the pair is being pressured by the 55-, 100– and 200-hour SMAs, currently located in the 111.64/111.82 range, it is likely that bears could prevail in the market. A possible downside target is the weekly S1 at 111.18.
On the other hand, the exchange rate could trade sideways around the given psychological level. Also, it is unlikely, that the rate could jump higher than 111.60 due to the upper boundary of the short-term descending channel.
