Yesterday, the USD/JPY currency pair dropped to the support level formed by the monthly PP and the weekly S2 at 108.00. During Friday morning, the pair was testing the given support.
If the given support level holds, it is likely that a reversal north could occur in the nearest future. However, it is unlikely that the exchange rate could exceed 108.60 due to the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP and S1, the Fibo 38.20%.
If the given support level does not hold, it is likely that the US Dollar could depreciate against the Japanese Yen within the following trading session. Note that the rate could gain support of the weekly S3 at 107.83.
