On Monday, the USD/JPY currency pair dropped to the 108.40 level. During today’s morning, the pair declined below the weekly S1 at 108.04.
Given that the exchange rate is pressured by the 200-hour SMA and the Fibo 50.00% at 108.35, it is likely that some downside potential could prevail in the market. In this case the rate could gain support from the monthly PP at 107.33.
Meanwhile, it is unlikely that bulls could prevail in the market, and the currency pair could exceed the resistance cluster formed by the weekly PP, the monthly R1, as well the 55– and 100-hour SMAs in the 108.66/109.00 area.
