On Monday, the USD/JPY currency pair raised to the weekly R1 at 107.78. During today’s morning, the pair was testing the given resistance level.
If the predetermined level holds, it is likely that a reversal south could occur. In this case the exchange rate could gain support from the 55-, 100– and 200-hour SMAs, as well the monthly PP in the 107.00/107.40 area.
Otherwise, it is likely that some upside potential could continue to prevail in the market. Note that the nearest resistance level, formed by the Fibo 50.00% and the weekly R2, is located at 108.30.