On Monday, the USD/JPY currency pair raised to the resistance formed by the Fibo 38.20%, the weekly PP and the 100-hour SMA circa 108.50. During today’s morning, the pair was testing the given resistance.
If the given resistance holds, it is likely that some downside potential could prevail in the market. In this case the exchange rate could gain support from the monthly S1 and the 55-hour SMA at 108.17.
If the given support holds, it is likely that the US Dollar could trade sideways against the Japanese Yen in the short term. Also, it is unlikely that bulls could prevail in the market, and the rate could exceed the monthly PP at 108.95.
