On Tuesday, the USD/JPY currency pair traded sideways in the 107.90 area. During today’s morning, the pair was testing the support level formed by the monthly PP at 107.33.
If the given support level holds it is likely that a reversal north could occur in the nearest future. Meanwhile, it is unlikely that the exchange rate could exceed the 108.40 area due to the resistance formed by the 55– and 200-hour SMAs, as well the Fibo 50.00%.
If the given support level does not hold, it is likely that some downside potential could prevail in the market. In this case the pair could gain support from the weekly S2, the monthly S1 and the Fibo 38.20% in the 106.47/106.86 area.
