Yesterday, the USD/JPY currency pair reversed south from the resistance level formed by the weekly S1 at 109.90. During Friday morning, the pair was trading at the 108.60 level.
Note that the exchange rate is supported by the 55– and 100-hour moving averages, currently located circa 108.80. Thus, it is likely that some downside potential could prevail in the market. In this case the rate could gain support of the monthly S1 and the Fibo 38.20% at 108.44.
If the given support level holds, it is likely that the currency pair could trade sideways in the short term. Also, it is unlikely that bulls could prevail, and the pair could exceed the 200-hour SMA at 109.11.
