During the last trading days, the USD/JPY currency pair declined to the support level – the weekly S2 at 107.53. During Tuesday morning, the pair broke the given support.
Given that the exchange rate is pressured by the 55-hour SMA near 108.00, it is likely that some downside potential could prevail in the market. Note that the nearest possible support level, formed by the weekly S3 and the Fibo 38.20%, is located only at 106.86.
It is unlikely that bulls could prevail in the market, and the currency pair could exceed the given moving average, as well the weekly S1 at 108.00.
