On Monday, the USD/JPY currency pair tried to surpass the 109.95. During today’s morning, the pair broke the lower boundary of the medium-term ascending channel.
Note that the exchange rate is pressured by the 55-, 100– and 200-hour moving averages, currently located circa 109.80. Thus, some downside potential could prevail in the market.
However, if the currency pair fails to surpass the 109.65 level, it is likely that the US Dollar could trade sideways against the Japanese Yen in the nearest future.