Yesterday, the USD/JPY currency pair traded sideways around the weekly S1 at 107.20. During Tuesday morning, the pair dropped below the 106.80 level.
It is likely that the exchange rate could be pressured by the Fibo 38.20%, the weekly S2 and the monthly PP near 106.85. Thus, some downside potential could prevail in the market.
Note that the rate could face the support level formed by the weekly S3 at 106.44. If the given support level holds, it is likely that the US Dollar could consolidate against the Japanese Yen in the short run.
