On Thursday, the currency exchange rate declined below the zone of 109.38/109.23. It eventually found support in the 109.00 level and started a recovery. During the morning hours of Friday’s European trading, the USD/JPY had almost reached the resistance of the 109.60 level and the 55-hour simple moving average.
If the SMA and the 109.60 level provide resistance, the pair could once again decline to the 109.00 level and test its support. If the 109.00 would be passed, a potential target would be the weekly S2 pivot point at 108.77.
On the other hand, if the rate manages to break the resistance of the 55-hour SMA and the 109.60 level, the USD/JPY would most likely encounter resistance in the weekly S1 simple pivot point at 109.76, the 61.80% Fibonacci retracement level at 109.83 and the 100-hour simple moving average.
