The US Dollar topped near the 110.80 level and started a fresh decline against the Japanese Yen. The USD/JPY pair broke the 110.50 and 110.40 support levels to move into a short-term bearish zone.
The pair even traded below a rising channel with support near 110.30 on the hourly chart. It settled well below the 110.00 level and the 50 hourly simple moving average. A low is formed near 109.57 on FXOpen and the pair is now correcting higher.
On the upside, an immediate resistance is near the 109.95 and 110.00 levels, above which the pair could recover towards the 110.20 and 110.25 levels.
If there is no upside break above the 110.00 level, the pair could continue to move down. An initial support on the downside is near the 109.60 level. Any more losses might call for a test of the 109.00 support zone.
