On Tuesday, the USD/JPY currency pair declined to the weekly S1 at 110.07. During today’s morning, the pair was trading near the given level.
Note that the exchange rate is pressured by the 55– and 200-hour SMA near 110.70. Thus, some downside potential could prevail in the market, and the rate could target the Fibo 50.00% at 109.58.
However, if the weekly S1 holds, it is likely that the US Dollar could trade sideways against the Japanese Yen in the short term. Also, it is unlikely that bulls could prevail, and the pair could exceed the weekly PP at 111.15.
