During Monday, the USD/JPY currency pair traded sideways, trying to surpass the resistance level formed by the Fibonacci 38.20% retracement and the weekly R1 at 108.48.
Note, that the pair is supported by the 55– and 100-hour SMAs, currently located at 108.16 and 107.99 respectively. Thus, if the given support and resistance hold, it is likely, that the exchange rate could continue to trade sideways.
However, if the given support level does not hold, it is expected, that a reversal south could occur in the nearest future. In this case, the rate could be supported by the weekly and monthly PPs, as well the 200-hour SMA in the 107.63/107.84 range.
