During the previous trading session, the USD/JPY currency pair tested the support of the 100-hour SMA. During Wednesday morning, the pair was trying to surpass the resistance level—the monthly S2 at 106.54.
If the given resistance level holds, it is likely, that the exchange rate could reverse south in the nearest future. However, it is unlikely, that the rate could drop lower than the weekly PP at 106.14.
Otherwise, the Japanese Yen, supported by the 55-hour SMA at 106.46, could appreciate against the US Dollar in the short term. In this case, the rate could target the psychological level at 106.80.