Yesterday, the USD/JPY currency pair raised to the resistance level—the weekly S1 at 108.90. During Thursday morning, the pair was testing the given resistance.
Given that the exchange rate is pressured by the 100– and 200-hour moving averages, it is likely that some downside potential could prevail in the market. In this case the rate could re-test the support level formed by the Fibo 38.20% and the monthly S1 at 108.40.
On the other hand, the currency pair could gain support of the 55-hour moving average at 108.77 and extend gains within the following trading session. However, note that the pair could face the resistance level—the weekly PP at 109.29.
