During the previous trading session, the USD/JPY currency pair consolidated at the 106.40 level. During Monday’s morning, the pair was testing the resistance of the monthly S2 at 106.54.
Note, that the exchange rate is supported by the 55-, 100– and 200-hour SMAs, currently located in the 105.97/106.24 range. Thus, some upside potential could prevail in the market, and the rate could reach the Fibo 23.60% at 107.02
However, if the given support and resistance hold, it is likely, that the pair could maintain its consolidation in the short term. Also, it is unlikely, that the rate could drop lower than the 105.87 mark due to the support of the monthly S3.
