During the first days of May, the USD/JPY currency pair tested the 107.40 level and reversed south. During Tuesday morning, the pair was testing the resistance formed by the 55– and 100-hour SMAs, as well the Fibo 38.20% in the 106.80 area.
If the given resistance holds, it is likely that a reversal south could occur in the nearest future. Note that the nearest support level—the weekly S1, is located at 106.32.
However, if the exchange rate fails to surpass the 106.60 level, it is likely that the US Dollar could consolidate against the Japanese Yen in the short term
