Yesterday, the USD/JPY currency pair raised to the 107.50 level. During Wednesday morning, the pair was trading near the given level.
Note that the exchange rate is supported by the 55-hour SMA near 106.70. Thus, some downside potential could prevail in the market. In this case the rate could face the resistance level—the Fibo 38.20% at 108.44.
If the given resistance does not hold, the currency pair could target the Fibo 50.00% at 109.58. Otherwise, the pair could re-test the lower boundary of the short-term descending channel in the 107.50 area.
