On Wednesday, the USD/JPY currency pair raised to the weekly R3 at 109.07. During today’s morning, the pair was testing the given resistance level.
If the given resistance level 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 R2 and the 55-hour SMA in the 108.50 area.
If the given support holds, it is likely that the US Dollar could consolidate against the Japanese Yen in the short term. Otherwise, the rate could decline to the weekly R1 at 108.21.
