Yesterday, the USD/JPY currency pair declined to the support level formed by the 100- and 200-hour SMAs at 108.68. During Thursday morning, the pair was testing the resistance level formed by the 55-hour SMA and the weekly R1 at 109.04.
If the given support and resistance level holds, it is likely that the US Dollar could trade sideways against the Japanese Yen within the following trading session.
If the given support level does not, the exchange rate could trade upwards in the nearest future. In this case the rate could target the monthly R1 at 109.39.
It is unlikely that bears could prevail in the market, and the currency pair could drop lower than 108.44 due to the support level formed by the Fibo 38.20% and the weekly PP.
