On Tuesday, the USD/JPY currency pair consolidated near 107.30. During today’s morning, the pair dropped to 107.00.
It is likely that the exchange rate could gain support from the Fibo 38.20% at 106.86 and reverse north in the short term.
Meanwhile, note that the rate would have to surpass the resistance range formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 107.12/107.30 area.
If the given support does not hold, it is likely that the currency pair could target the psychological level at 106.60.
