Despite being sticky to the upper boundary of the senior channel down, the USD/JPY exchange rate failed to move past this level (not taking into account the false breakout mid-session). The pair was located near the 55-, 100– and 200-hour SMAs for most of the session. However, the false breakout resulted in the price crossing all the SMAs and the weekly PP from above. The failed attempt to move above the latter pushed the Greenback even lower until its closing price at 110.33. On Wednesday morning, the rate resumed its fall even below the weekly S1, but managed to reverse near the 109.80 mark. It is likely that the rate tries to approach the upper channel boundary once again, thus remaining between the weekly S1 and PP for the whole session. The given level may be reached on Thursday morning.
