USD / JPY Analysis: Down Below 107.60

In the past few trading days, the USD / JPY currency pair has fallen to the support level - the weekly S2 at 107.53. Tuesday morning, the pair broke the support provided. Since the 55-hour SMA is pushing the exchange rate near 108.00, some downside potential should prevail. Note that the closest possible support level, made up of the weekly S3 and Fibo 38.20%, is only 106.86. It is unlikely that the bulls will prevail in the market, and the currency pair could exceed the given moving average as well as the weekly S1 at 108.00.