In the aftermath of breaking the channel down pattern, the USD/JPY surged and reached a new high level. However, after booking a new high, the pair began to decline.
In the near term future, the pair was expected to look for support at the 108.87 level. At that level the weekly simple pivot point and the 55 and 100-hour simple moving averages could provide support. Meanwhile, it was spotted that the 109.00 mark was providing support on Monday morning. This level should be first passed before reaching the mentioned technical levels.
In regards to resistance, a potential surge of the rate would test the zone of the March high levels from 109.23 to 109.37. In the case of the zone not holding, the pair would immediately face the resistance of the weekly R1 at 109.44.
