The Turkish Lira has been depreciating against the Japanese Yen since the middle of November after the TRY/JPY currency pair reversed south from the upper boundary of the medium-term descending channel at 19.40.
Currently, the exchange rate is testing the support level, formed by the monthly S3 at 18.08. From a theoretical point of view, some downside potential could continue to dominate the market in the short-term future.
However, if the given support level holds, the expected decline might not be immediate, and the currency exchange rate could make a brief upside retracement during the following trading sessions.
