USD/JPY Met Resistance

USD/JPY continued to trade in the descending channel on the short-term outlook. The pair registered a high of 114.92 earlier this week and is now trading at 113.70. The downtrend appears to be intact as market participants chose to follow the pattern and stay in the channel.

In light of this, if the scenario plays out, we should see the pair reach the lower line of the channel before long. What would aid the process is negative US fundamentals. If the fundamentals are in favor of the pattern, price should reach below 112.00.

On the other hand, US dollar bulls are ready to take it higher with the support of positive fundamentals. Until the end of the week, no major news are scheduled, except the US initial jobless claims that would be released tomorrow.

Chart: USD/JPY H4