On Tuesday, the USD/JPY currency pair declined to the Fibo 23.60% at 107.02. During today’s morning, the pair reversed north.
Note that the exchange rate is pressured by the 55-hour SMA near 107.75. Thus, some downside potential could prevail in the market. In this case the rate could gain support from the weekly S1 at 106.50.
However, if the given Fibo holds, it is likely that the US Dollar could consolidate against the Japanese Yen in the short run. Also, it is unlikely that bulls could prevail, and the pair could exceed the Fibo 38.20% at 108.44.
