Yesterday, the USD/JPY currency pair tried to surpass the resistance level formed by the weekly R2 at 108.13. During Friday morning, the pair was trading near the given resistance.
Note that the exchange rate is supported by the 55– and 100-hour SMAs, currently located at 107.93 and 107.64 respectively. Thus, some upside potential could prevail in the market. A possible upside target is the Fibo 38.20% at 108.44.
However, if the given resistance level holds, a reversal south could occur in the nearest future. In this case it is unlikely that the rate could drop lower than the 107.52 mark due to the support level formed by the weekly R1.
