Yesterday, the USD/JPY currency pair tested the support level formed by a combination of the weekly S3 and the monthly S2 at 109.97. During Thursday’s morning, the pair declined to the lower boundary of the short-term descending channel at 109.66.
From a theoretical perspective, it is likely, that a reversal north could occur in the nearest future, and the pair could increase to the 55-hour SMA at 110.20.
On the other hand, it is expected, that the currency pair could trade sideways, trying to surpass the support level formed by the Fibonacci 50.00% retracement at 109.58.
