On Friday, the USD/JPY currency pair consolidated near the Fibonacci 50.00% retracement at 109.58. During today’s morning, the pair was testing the upper boundary of the long-term descending channel at 109.74.
From a theoretical point of view, it is likely that a reversal south could occur in the nearest future. In this case it is unlikely that the exchange rate could drop lower than the weekly PP at 109.29.
However, note that the currency pair is supported by the 55-hour moving average, currently located at 109.54. Thus, the pair could continue to test the given channel. If the given trend does not hold, the pair could reach the weekly R1 at 109.92.
