Yesterday, the USD/JPY currency pair surpassed the 107.20 level. During Tuesday morning, the pair tested the resistance level—the weekly R1 at 107.52.
From the one hand, the exchange rate could re-test the given resistance level in the nearest future. If it does not hold, the rate could reach the psychological level at 107.80. Otherwise, the pair could consolidate in the short run.
From the other hand, the US Dollar could depreciate against the Japanese Yen within the following session. However, it is unlikely that the pair could drop lower than the 106.53/106.84 range due to the support cluster formed by the 100– and 200-hour SMAs, as well the weekly and monthly PPs.
