Yesterday, the USD/JPY currency pair breached the medium-term ascending channel south. During Thursday morning, the pair dropped to the 110.00 level.
From the one hand, it is likely that the exchange rate could continue to trade downwards. In this case the rate could face the support cluster formed by the weekly PP, the 200-hour SMA and the Fibo 50.00% in the 109.18/109.58 area.
On the other hand, if the 110.00 level holds, it is likely that a reversal north could occur in the nearest future. In this case the currency pair could face the resistance formed by the 55– and 100-hour SMAs, as well the Fibo 61.80% in the 111.00 area
