Yesterday, the USD/JPY currency pair traded sideways along the 107.60 mark. During Tuesday morning, the pair re-tested the 107.80 level.
Note that the exchange rate could gain support from the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 107.60 area. Thus, some upside potential could prevail in the market, and the rate could reach the 108.00 mark.
However, if the pair fails to exceed the 107.80 level, it is likely that the US Dollar could consolidate against the Japanese Yen in the short term.
Also, it is unlikely that bears could prevail in the market, and the pair could decline below the weekly S1 and the monthly PP at 107.33.
