Yesterday, the USD/JPY currency pair touched the 107.40 level. During Friday morning, the pair was testing the resistance level formed by the 55– and 100-hour SMAs, as well the weekly PP at 107.70.
It is likely that the exchange rate could gain support from the 200-hour SMA near 107.60 to surpass the given resistance and re-test the lower boundary of the short-term descending channel. If the given channel holds, a reversal south could follow.
However, if the given resistance holds, it is likely that some downside potential could prevail in the market. In this case the currency pair could re-test the 107.40 mark.
