During the previous trading session, the USD/JPY currency pair declined to the support level – the monthly S3 at 105.87. During Monday’s morning, the pair was testing the given support.
Note, that the exchange rate is trading near the lower boundary of the long-term descending channel at 105.73. Thus, from a theoretical perspective, it is expected, that a reversal north could occur soon. In this case, the rate has to surpass the Fibonacci 23.60% retracement at 107.02.
If the given support and channel do not hold, it is likely, that the US Dollar could continue to depreciate against the Japanese Yen. A possible downside target is the 2018/2019 minimum at the 104.67 mark.
