Yesterday, the USD/JPY currency pair raised to the resistance level formed by the weekly R3 and the monthly R1 at 109.90. During Thursday morning, the pair was testing the given resistance.
If the given resistance level holds, it is likely that a reversal south could occur in the nearest future. Note that the currency pair could gain support of the 55-hour SMA, as well the weekly R2 and the Fibo 50.00% in the 109.60 area.
If the given resistance level does not hold, it is likely that the US Dollar could continue to appreciate against the Japanese Yen in the short term. In this case a possible upside target is the psychological level at 110.20.
