Yesterday, the USD/JPY currency pair reversed north from the lower boundary of the short-term descending channel at 105.85. During Wednesday morning, the pair was testing the resistance formed by the 100-hour SMA at 106.23.
If the given moving average holds, it is unlikely that some upside potential could prevail in the market in the short term. Also, note that the exchange rate is supported by the 200-hour SMA at 106.05. Thus, the rate could consolidate between the given SMAs today.
From a theoretical point of view, it is likely that bears could prevail in the market in the short run, as the pair could reverse south from the upper channel line at 106.33. It is unlikely that the rate could decline lower than the weekly PP at 105.82.
