At the end of last week, the USD/JPY currency pair reversed south from the upper boundary of the long-term descending channel. During Monday morning, the pair was trading at the 109.40 mark.
From a theoretical perspective, it is likely that the US Dollar could maintain its depreciation against the Japanese Yen in the nearest future. In this case, it is unlikely that the pair could drop lower than the monthly PP at 109.03.
However, note that the exchange rate could gain support from the 55-hour SMA, currently located at 109.25 and re-test the upper channel line. If the given channel does not hold, the rate could target the weekly R1 at 109.91.
