On Thursday, the USD/JPY currency pair declined to the lower line of the short-term ascending channel. During today’s morning, the pair breached the given channel south and dropped to the weekly S1 at 107.12.
If the given support level holds, it is likely that a reversal north could occur, and the exchange rate could exceed the psychological level at 107.40.
On the other hand, it is likely that the US Dollar could consolidate against the Japanese Yen in the short term.
If the given support does not hold, it is likely that the pair could target the Fibo 38.20% at 106.86.