During the previous trading session, the USD/JPY currency pair reached the 2017/2019 low at 104.67. During today’s morning, the pair was testing the resistance level formed by the weekly PP and the monthly S3 at 105.87.
It is unlikely, that some upside potential could prevail in the market, as the exchange rate is pressured by the 55-, 100– and 200-hour SMAs, currently located circa 106.30.
If the given resistance holds, it is likely, that a reversal south could occur in the nearest future. Important support levels to look out for is the weekly S1 and S2, located at 104.91 and 104.34 respectively.