The USD/JPY currency pair declined to the support level— weekly S2 at 106.09 and reversed north. During today’s morning, the pair was trading near the resistance level—the monthly PP at 107.33.
If the predetermined resistance holds, it is likely that a reversal south could occur, and the exchange rate could decline to the support formed by the 55– and 100-hour SMAs, as well the Fibo 38.20% near 106.85.
Meanwhile, note that the rate could gain support from the weekly PP and the 200-hour SMA near 107.05. If the given support holds, it is likely that the pair could consolidate in the short run.
