Yesterday, the USD/JPY currency pair reached the resistance level formed by the Fibonacci 23.60% retracement at 107.02. During today’s morning, the pair was testing the given resistance.
On the one hand, the exchange rate could surpass the given resistance level and remain to go upwards. A possible upside target is the 107.40/107.60 range.
However, note, that the rate has to surpass the weekly R1 at 107.19 as well. If the given level holds, the Greenback could consolidate against the Japanese Yen.
It is unlikely that bears could prevail, and the pair could drop lower than the 106.24/106.70 range due to the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the monthly PP.
