Yesterday, the USD/JPY currency pair raised to the resistance level formed by the weekly R1 and the monthly PP at 107.65. During Tuesday morning, the pair reversed south.
On the one hand, it is likely that some downside potential could prevail in the market, and the exchange rate could try to surpass the support area formed by the weekly R1, the 55-hour SMA and the Fibo 38.20% in the 106.86/107.20 range.
On the other hand, it is likely that the currency pair could gain support from the 107.40 level and trade sideways in the short run. If the given resistance does not hold, the pair could reach the 108.00 mark.
