On Monday morning, the USD/JPY dropped below the support of the 108.63 level, which kept the rate up during the last week. This resulted in a sharp move down that by the middle of Monday’s trading reached the 108.00 mark.
In the near term future, the rate was expected to consolidate by retracing back up to the resistance levels near 108.35 or trading sideways above the 108.00 mark.
On the other hand, a potential decline could look for support in the weekly S2 simple pivot point at 107.88. If the rate passes the pivot point, the USD/JPY could find support in the lower trend line of the channel down pattern that captures the rate’s April decline.
