The US Dollar is facing many hurdles near the 103.85 and 104.00 levels against the Japanese Yen. The USD/JPY pair traded as low as 103.55 recently and it is currently correcting higher.
There was a break above the 103.65 level, and the pair is now testing the 103.70 zone. It seems like there is a declining channel forming with resistance near 103.72. The 50 hourly simple moving average is also near the 103.75 level to act as a resistance.
A successful close above the channel resistance and the 50 hourly SMA could open the doors for a retest of the 104.00 resistance zone. To continue higher, the pair must settle above 104.00 on FXOpen.
Conversely, the pair could struggle to clear 103.85 and 104.00. In the stated case, there is a risk of a fresh decline towards the 103.50 level in the short-term.
