On Wednesday, the USD/JPY currency pair declined to the Fibo 38.20% at 106.86. During today’s morning, the pair was testing the given level.
Given that the exchange rate is pressured by the 55-hour SMA near 107.50, it is likely that some downside potential could prevail in the market. Note that the rate could gain support from the weekly S2 and the monthly S1 at 106.50.
However, if the Fibo 38.20% holds, it is likely that the US Dollar could trade sideways against the Japanese Yen within the following trading session.
Also, it is unlikely that bulls could prevail in the market, and the pair could exceed the 108.35 mark due to the resistance formed by the 100– and 200-hour SMAs, as well the Fibo 50.00%.
