On Wednesday, the USD/JPY currency pair tested the resistance level formed by the 200-hour SMA and the weekly PP at 107.84. During today’s morning, the pair was testing the support formed by the 100-hour SMA at 107.58.
If the given support and resistance levels hold, it is likely that the US Dollar could trade sideways against the Japanese Yen in the short run.
It is unlikely that some downside potential could prevail in the market, as the exchange rate is supported by the 55-hour SMA and the monthly R1 at 107.46.
If the given resistance does not hold, the currency pair could target the psychological level at 108.00.
