During the previous trading session, the USD/JPY currency pair traded sideways in the 106.10/106.40 area. During today’s morning, the pair tested the support formed by the 100– and 200-hour SMAs circa 106.15.
If the given moving averages hold, it is likely, that the US Dollar could continue to consolidate against the Japanese Yen within the following trading session. If bulls prevail in the market, the exchange rate could target the 106.60 level.
However, if the given moving averages do not hold, it is likely that the rate could trade downwards in the nearest future. Note that the nearest support level—the weekly PP, is located at the 105.82 mark.
