On Thursday, the USD/JPY exchange rate traded sideways near the support level—the Fibonacci 50.00% retracement at 109.58.
During Friday’s morning, the rate was testing the resistance level formed by a combination of the weekly S3, the monthly S2 and the 55-hour SMA at 109.97.
If the given resistance holds, it is likely, that the currency pair could surpass the given support and decline. The nearest potential downside target is the 109.50 mark.
However, if the given support holds, it is expected, that the pair could continue to trade sideways.
