On Wednesday, the USD/JPY currency pair traded sideways, trying to breach the support cluster formed by the 55-, 100– and 200-hour SMAs in the 107.96/108.14 range.
During Thursday’s morning, the exchange rate still was testing the given support. If it holds, it is expected, that a reversal north could occur within the following trading hours, and the rate could reach the weekly R1 at 108.35.
Otherwise, it is likely, that the pair could go downwards. Note, that the pair could the support from the weekly and monthly PPs, located circa 107.80. If the given support does not, the rate could target the 107.60 level.
