Yesterday, the USD/JPY currency pair tested the lower boundary of the medium-term ascending channel at 109.80. During Wednesday morning, the rate was testing the support provided by the 200-hour SMA at 109.96.
Given that the exchange rate is pressured by the 55– and 100-hour moving averages, it is likely that bears could prevail in the market. Thus, the rate could re-test the lower channel line in the nearest future.
However, if the given resistance does not hold, the currency pair could trade upwards within the following trading session. In this case the pair could target the monthly R2 at 110.25.
