During Tuesday, the USD/JPY currency pair tried to surpass the resistance level—the weekly R1 at 107.52.
During today’s morning, the pair reached the psychological level at 107.80. On the one hand, the exchange rate could continue to extend gains. In this case the rate could target the weekly R1 located at the 108.13 level.
However, if the given psychological level holds, it is likely that a reversal south could occur in the nearest future. It is unlikely that the pair could decline lower than the 107.02/107.32 range due to the support cluster formed by the 55– and 100-hour SMAs, as well the Fibo 23.60%.