Yesterday, the USD/JPY currency pair tumbled to the 109.00 level. During Tuesday morning, the pair was testing the support level—the weekly S1 at 108.90.
If the given support level does not hold, it is likely that the exchange rate could continue to trade downwards in the short term. The rate could target the Fibo 38.20% at 108.44.
However, if the given support holds, the currency pair could trade sideways, pressured by the 200-hour SMA at 109.11. Also, it is unlikely that bulls could prevail, and the pair could exceed the weekly PP at 109.29.
