On Monday, the US Dollar plunged by 86 pips or 0.78% against the Japanese Yen. The currency pair tested the lower boundary of a descending channel pattern at 109.18 during Monday’s trading session.
Everything being equal, the USD/JPY exchange rate is likely to continue to trend in the descending channel pattern during the following trading session. The potential target for sellers would be near the 109.00 level.
However, bearish traders might find support at 109.18 during Tuesday’s trading session.