Yesterday, the USD/JPY currency pair declined to the support formed by the 200-hour SMA and the weekly PP at 108.97. During Wednesday morning, the pair was testing the given support.
If the given support holds, it is likely that a reversal north could occur in the nearest future. However, note that the exchange rate has to surpass the 55– and 100-hour SMAs located circa 109.10.
If the given support does not hold, it is likely that the currency pair could continue to trade downwards. In this case, the pair could target the psychological level at 108.60.
