Yesterday, the USD/JPY currency pair reached the psychological level at 09.20. During Wednesday morning, the pair was testing the weekly R1 at 109.04.
If the given level holds, it is likely that the US Dollar could continue to appreciate against the US Dollar in the short run. However, note that the pair could face the resistance level – the monthly R1 at 109.39.
Otherwise, it is likely that the exchange rate could trade downwards within the following trading session. Note, that the rate could gain support of the 55-, 100- and 200-hour SMAs, as well the weekly PP and the Fibo 38.20% in the 108.44/108.77 area.
