Yesterday, the USD/JPY currency pair remained below the 107.00 mark. During Wednesday morning, the pair was testing the support level—the weekly S3 at 106.44.
If the given support holds, it is likely that a reversal north could occur. In this case the exchange rate would have to surpass the resistance level formed by the Fibo 38.20%, the weekly S2 and the monthly PP at 106.85.
If the given resistance holds, it is likely that the US Dollar could consolidate against the Japanese Yen in the short term. Otherwise, the rate could try to surpass the 55-hour SMA near 107.00.
