At the end of previous week, the JPY/USD currency pair skyrocketed to the resistance level formed by the weekly PP and the Fibonacci 38.20% retracement at 108.44. During today’s morning, the pair was testing the given resistance.
Note, that the exchange rate was trading near the upper boundary of the medium-term descending channel, thus, it is likely, that some downside potential could prevail in the market.
However, it is unlikely, that the exchange rate could drop lower than 107.63/107.91 range due to the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs.
On the other hand, the rate could trade sideways in the short run, trying to surpass the given resistance.
