During the previous trading session, the USD/JPY exchange rate plummeted to the lower boundary of the short-term ascending channel at 108.30. During today’s morning, the rate breached the given channel south.
Note, that the currency pair is supported by the weekly S1 at the 108.22. Thus, the pair could trade sideways, trying to surpass the given support level.
It is unlikely, that the rate could reverse north, and the US Dollar could exceed the 108.44/108.51 range to the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP and the Fibo 38.20%.
If the given support does not hold, it is expected, that some downside potential could prevail in the market.
