On Thursday, the USD/JPY currency pair breached short-term ascending channel south. During today’s morning, the pair was testing the weekly S2 at 106.28.
If the given support level holds, it is likely that a reversal north could occur. In this case the exchange rate could target the resistance area formed by the weekly S1 and the Fibo 38.20% in the 106.66/106.86 range.
On the other hand, it is likely that the US Dollar could trade sideways against the Japanese Yen in the nearest future, as the rate could continue to test the predetermined support level.
