On Tuesday, the USD/JPY currency pair reached the psychological level at 108.80. During today’s morning, the pair was trading near the given level.
Given that the exchange rate is supported by the 55– and 100-hour SMAs, currently located circa 108.40, it is likely that bulls could prevail in the market. A possible upside target is the resistance level formed by the weekly and monthly R1s at 109.14.
On the other hand, the currency pair could consolidate at the given psychological level within the following trading session. Also, it is unlikely that bears could prevail, and the pair could drop lower than the weekly PP at 107.91.