During the previous trading session, the USD/JPY currency pair raised to the Fibo 38.20% at 108.44. During Monday morning, the pair declined to the 106.00 level.
Note that the exchange rate faced the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 105.50 area. If the given support holds, it is likely that a reversal north could occur.
Otherwise, it is likely that some downside potential could prevail in the market in the nearest future. In this case the currency pair could target weekly S1 at 103.31.
