Forex: USD/JPY, two scenarios likely
During Wednesday, the USD/JPY currency pair increased to the 107.80 level. During today’s morning, the pair exceeded the psychological level at 108.00.
Note, that the exchange rate is supported by the 200-hour moving average, currently located at 107.79. Thus, it is likely, that bulls could continue to prevail in the market. A potential upside target is the resistance level formed by the weekly PP and the Fibonacci 38.30% retracement at 108.44.
On the other hand, bears could prevail in the market in the nearest future, and the rate could reverse south. It is unlikely, that the pair could tumble lower than 107.43 mark due to the support level formed by the 55– and 100-hour SMAs.