At the end of last trading week, the US Dollar depreciated slightly against the Japanese Yen. During Monday morning, the USD/JPY currency pair tested the support formed by the 100– and 200-hour SMAs, located circa 106.10.
If the given moving averages hold, it is likely that some upside potential could prevail in the market within the following trading session. In this case the exchange rate could target the weekly PP located at 106.70.
Otherwise, it is likely, that the US Dollar could trade sideways against the Japanese Yen in the short term. Also, it is unlikely that some downside potential could prevail in the market, as the pair is supported by the weekly PP at 105.82.
