The upper border of the inner channel descends from 105.80 to about 105.50 next week so even a sideways motion in the USD/JPY will, by Thursday or Friday bring it into contact. As we saw this week the likely response in the USD/JPY at that point is lower.”
“There is minor support at 104.60 but its position in the middle of the channel means that a move through has little overall import. Above the market the first resistance is at 106.00 followed by 106.50. A rise to these levels would not negate the incline as the wider channel which has its origin in the March panic would remain in place.”