The decline of the USD/JPY almost reached the 106.60 level, before recovering. During the early hours of Friday’s trading, the pair was aiming at the resistance of the 109.00 level.
At the 109.00 level, a resistance zone starts. The zone previously provided support at the start of April and afterwards provided resistance during this week. In addition, note that the 100-hour SMA strengthens the zone. Moreover, the upper trend line of a channel down pattern could provide additional resistance.
If the pair passes the mentioned resistance levels, the USD/JPY could reach for the 109.40 level and the 200-hour simple moving average. On the other hand, a failure to surge could result in the continuation of the previous decline and new low levels.
