On Thursday, the USD/JPY currency pair declined to the support level formed by the 55– and 200-hour SMAs, as well the weekly PP at 107.70. During today’s morning, the pair was testing the given support.
If the given support level holds, it is expected, that a reversal north could occur within the following trading hours. In this case, the exchange rate could try to surpass the psychological level at the 108.00 mark.
Otherwise, it is likely, that the Japanese Yen could continue to appreciate against the US Dollar. Note, that the rate could be supported by the 100-hour moving average and the monthly S1, located at 107.50 and 107.39 respectively.
