After making three attempts to pass the 109.00 level, on Tuesday, the USD/JPY remained below this level. Due to the strength of the resistance of the 109.00 level and the additional strength of the 100 and 200-hour simple moving averages, the pair was expected to decline.
A potential decline was most likely going to reach the 50.00% Fibonacci retracement level at 108.35, which stopped the pair’s Friday’s drop. The drop was caused by worse than expected US labour data.
On the other hand, if the rate manages to pass the resistance of the 100 and 200-hour SMAs and the 109.00 level, the USD/JPY could reach for the weekly R1 simple pivot point at 109.45.
