Yesterday, the USD/JPY currency pair consolidated at the 106.80 level. During Friday morning, the pair maintained its consolidation.
Given that the exchange rate is pressured by the 55-, 100– and 200-hour SMAs, currently located in the 107.14/107.60 range, it is likely that some downside potential could prevail in the market. In this case the rate has to surpass the support formed by the weekly S2 and the monthly S1 at 106.40.
If the given support holds, it is likely that the US Dollar could continue to trade sideways against the Japanese Yen within the following trading session. Also, it is unlikely that the pair could exceed the weekly S1 at the 107.24 mark.
