On Tuesday, the USD/JPY currency pair tried to exceed the 108.50 level. During today’s morning, the pair was testing the resistance formed by the Fibo 38.20% and the 55-hour SMA near 107.90.
If the given resistance holds, it is likely that some downside potential could prevail in the market. In this case the exchange rate could gain support from the weekly S1, the monthly PP and the Fibo 50.00% in the 106.70 area.
If the given support level holds, the US Dollar could consolidate against the Japanese Yen in the short run. Also, it is unlikely that the bulls could prevail, and the pair could exceed the Fibo 23.60% at 109.34.
