On Tuesday, the USD/JPY currency pair broke the lower line of the short-term ascending channel.
It is likely that the exchange rate could gain support from the 55– and 100-hour moving averages in the 105.50 area and trade upwards in the short term. In this case the rate could face the resistance level—the monthly PP at 106.02.
In the meantime, it is unlikely that bears could prevail in the market, and the currency pair could decline below the support area formed by the weekly PP, the monthly S1, the Fibo 23.60% and the 200-hour SMA in the 104.99/105.10 range.
