On Wednesday, the USD/JPY currency pair tried to surpass the resistance level formed by the monthly S2 at 106.54. During today’s morning, the pair declined to the lower boundary of the short-term ascending channel at 106.30.
From a theoretical point of view, it is likely, that a reversal north could occur within the following trading hours. In this case, the exchange rate could re-test the given resistance.
However, note, that the rate is pressured by the 55– and 100-hour SMAs, currently located at 106.44. Thus, the pair could breach the given channel south and decline to the support level formed by the 200-hour SMA and the weekly PP at 106.14.
