On Friday, the USD/JPY currency pair traded sideways at the 108.00 area. During today’s morning, the pair was testing the resistance level—the monthly S1 at 108.17.
Note that the exchange rate is pressured by the 55– and 100-hour moving averages. Thus, it is likely that some downside potential could prevail in the market. In this case, the rate could gain support of the monthly S2 at 107.65.
On the other hand, the US Dollar could maintain its consolidation against the Japanese Yen in the short run. Also, it is unlikely that bulls could prevail, and the pair could exceed the 108.60 level.
