USD/JPY Could Decline

Yesterday, the US Dollar consolidated against the Japanese Yen at 108.60. During Friday morning, the USD/JPY currency pair traded at 108.50.

Note that the exchange rate is pressured by the 55-, 100- and 200-hour moving averages, currently located in the 108.56/108.71 area. Thus, some downside potential could prevail, and the rate could target the weekly S1 at 108.28.

However, note that the currency pair could gain support of the Fibonacci 38.20% retracement at 108.44. If the given support holds, the Greenback could continue to consolidate against the Japanese Yen in the short term.