The US Dollar struggled in the past few days and remained below the 109.00 resistance area against the Japanese Yen. The USD/JPY pair broke a couple of key supports near 108.60 and even tested the 108.45 level.
A low was formed near 108.43 and the pair is currently correcting higher. There was a break above the 108.60 level and the 50 hourly simple moving average. However, the pair seems to be facing a strong resistance near the 108.80 area.
To move into a positive zone, the pair needs to gain momentum above the 108.80 and 109.00 resistance levels. On the downside, there is a decent support forming near 108.60, the 50 hourly SMA, and a bullish trend line on the hourly chart.
Therefore, a clear break below the 108.60 level might decrease the chances of a recovery above the 109.00 area in the near term.
