During the previous trading session the USD/JPY currency pair consolidated, trying to surpass the resistance level formed by the weekly PP and the monthly S3 at 105.87.
Given that the exchange rate is pressured by the 55-, 100– and 200-hour moving averages in the 105.87/106.21б, it is likely that some downside potential could prevail in the market. Note that the nearest support level is the weekly S1 at 104.73.
On the other hand, the US Dollar could trade sideways against the Japanese Yen in nearest future, testing the given SMAs. It is unlikely that bulls could prevail in the market, and the pair could surpass the monthly S2 at 106.54.
