On Tuesday, the USD/JPY currency pair breached the medium-term descending channel south. During today’s morning, the pair pierced the weekly S3 at 105.25.
It is likely that some downside potential could prevail in the market in the nearest future, and the exchange rate could target the 104.60/104.80 area.
Meanwhile, note that the rate could gain support from the Fibo 23.60% and monthly S1 at 105.00. If the given support holds, the pair could reverse north.