Yesterday, the USD/JPY currency pair declined to the monthly R1 at 109.47. During Friday morning, the pair was testing the upper boundary of the short-term descending channel at 109.65.
From a theoretical point of view, it is likely that a reversal south could occur in the short term. In this case the exchange rate could target the weekly S2 at 109.22.
On the other hand, the currency pair could gain support of the monthly R1 and reverse north in the nearest future. In this case it is unlikely that the pair could exceed 110.00 due to resistance formed by the 100– and 200-hour SMAs, as well the weekly PP.
