Yesterday, the US Dollar appreciated against the US Dollar. During Tuesday morning, the USD/JPY currency pair reached the psychological level at 108.80.
Given that the exchange rate is supported by the 55-, 100- and 200-hour moving averages, it is likely that some upside potential could prevail in the market. However, note that the rate would have to surpass the resistance level formed by the weekly R1 at 109.04.
If the given resistance level holds, it is likely that the currency pair could trade sideways around the 108.80 level in the short term. Also, it is unlikely that some downside potential could prevail in the market, and the pair could decline lower than the monthly PP at 107.94.
