On Monday, the USD/JPY currency pair traded sideways near 107.70. During today’s morning, the pair touched the 107.90 level.
It is likely that the exchange rate could gain support from the 55– and 100-hour SMAs, as well the weekly and monthly PPs in the 107.60 area. Thus, some upside potential could prevail in the market.
However, if the rate fails to surpass the 107.00 mark, it is likely that the US Dollar could consolidate against the Japanese Yen in the short.
Also, it is unlikely that bears could prevail in the market, and the pair could decline below the 200-hour SMA near 107.50.
