Yesterday, the USD/JPY currency pair tried to surpass the support level formed by the Fibo 38.20% and the 200-hour SMA near 106.80. During Thursday morning, the pair continued to test the given support.
Note that the exchange rate is pressured by the 55– and 100-hour SMAs, as well the weekly R1 in the 107.10 area. Thus, some downside potential could prevail in the market, and the rate could target the psychological level at 106.40.
However, if the given support level holds, it is likely that the Japanese Yen could consolidate against the US Dollar within the following trading session.
