On Thursday, the USD/JPY currency pair consolidated at 107.20. During today’s morning, the pair was testing the Fibo 38.20% at 106.86.
If the given support level holds, it is likely that a reversal north could occur in the nearest future. Note that the exchange rate could face the resistance formed by the weekly R1 and the monthly PP in the 107.40 area.
Otherwise, it is likely that some downside potential could prevail in the market in the short term. In this case the currency pair could gain support from the weekly and monthly S1s at 106.50.
