During the previous trading session, the USD/JPY currency pair tumbled to the monthly S3 at the 109.12 mark. During Tuesday’s morning, the pair reversed north to the 55– and 100-hour SMAs located circa 109.68.
If the given moving averages hold, it is expected, that the exchange rate reverses south and trades down. Important support levels to look out for is the weekly S1 and the monthly S3 located at 109.32 and 109.12 respectively.
However, note, that the rate is also supported by the Fibonacci 50.00% retracement at 109.58. Thus, the pair could breach the given SMAs and rise to the monthly S2 at 109.97.
