Yesterday, the USD/JPY currency pair skyrocketed to the resistance level formed by the weekly R1 at 106.79. During today’s morning, the pair reversed south to the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 105.81/106.03 range.
If the given support holds, it is expected, that the exchange rate could reverse north within the following trading hours. It is unlikely, that the US Dollar could exceed the 107.02 mark due to the resistance of the Fibo 23.60%.
If the given cluster does not hold, the pair could continue to go downwards in the nearest future. A possible downside target is the psychological level at the 105.40 mark.
