Yesterday, the USD/JPY currency pair tried to surpass the support level formed by the weekly S1 and the monthly PP at 108.90. During today’s morning, the rate continued to test the given level.
Note that the exchange rate is pressured by the 55-hour moving average, currently located at 109.14. Thus, bears could prevail in the market in the nearest future. A possible downside target is the Fibo 38.20% at 108.44.
However, if the given support level holds, it is likely that the US Dollar could continue to consolidate against the Japanese Yen in the short run. Also, it is unlikely that bulls could prevail, and the rate could exceed the monthly R1 at 109.47.
