Yesterday, the USD/JPY currency pair traded sideways at the 105.70 level. During today’s morning, the pair tested the resistance level—the monthly S2 at 106.54.
It is likely, that the exchange rate could trade sideways between the given resistance and the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP and the monthly S3 in the 105.79/106.03 range.
However, if the given support cluster does not hold, it is expected, that bears could prevail in the market in the nearest future. A possible downside target is the psychological level at 105.20.
