Yesterday, the USD/JPY currency pair tumbled to the monthly S2 at 107.65. During Wednesday morning, the pair reversed north.
Note that the exchange rate faced the resistance level formed by the Fibo 38.20% and the weekly PP at 108.50. If the given resistance holds, it is likely that a reversal south could occur in the nearest future, and the rate could go downwards.
On the other hand, the currency pair could gain support of the 55– and 100-hour SMAs at 108.31 and extend gains in the short run. Note that the pair would have to surpass the 200-hour SMA and the monthly PP, located at 108.74 and 108.95 respectively.
