USD/JPY Analysis: Continues to trade sideways

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USD/JPY

Previous forecast worked—the USD/JPY currency pair continued to trade sideways around the 112.00 level.  

Given that the pair is still pressured by the monthly R1 and the upper boundary of the long-term descending channel at 112.00, it is unlikely, that some upside potential prevails in the market. 

If the support level formed by the 55-hour SMA at 111.98 holds, it is likely, that the pair continues to trade sideways. 

However, if the given resistance does not hold, it is expected, that exchange rate targets the 112.30 level.