On Tuesday, the USD/JPY currency pair failed to exceed the 107.80 level. During today’s morning, the pair was testing the support formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 107.50 area.
If the given support level holds, it is likely that a reversal south could occur in the nearest future. In this case the exchange rate could re-test the 107.80 mark.
If the predetermined resistance level holds, it is likely that the US Dollar could trade sideways against the Japanese Yen in the short run.
