On Thursday, the USD/JPY currency pair dropped to the monthly S3 at 109.12. During Friday’s morning, the pair declined to the support level—weekly S1 at 108.83.
If the given support level holds, it is expected, that a reversal north could occur within the following trading hours. In this case, the pair would have to surpass the given monthly S3.
Also, it is unlikely, that the exchange rate could jump higher than the 109.45 mark due to the resistance of the 55– and 100-hour SMAs.
If the given support does not hold, it is likely, that the rate could target the Fibonacci 38.20% retracement at the 108.44 mark.
