The USD/JPY reached the June high level at 109.83 where a 61.80% Fibonacci retracement level is located at. The rate reached the target faster than forecast, as the pair broke the narrow channel up pattern, which had guided the rate before.
Afterwards, two attempts to pass the Fibonacci retracement level were made and both failed. By the middle of Monday’s European trading, the rate had retraced down and found support in the previous March high levels and the 109.40 level.
In the near term future, the rate was set to consolidate by trading sideways. Afterwards, the 55-hour simple moving average could provide additional support. The additional support might be enough for the USD/JPY to reach above the 109.83 level.
On the other hand, a potential decline would have to pass the support of the SMA and the support zone of the prior March high level at 109.25/109.35.
