During Monday’s Asian trading session, the USD/JPY tested the resistance of the 55-hour simple moving average, which had held the rate down since Friday.
In general, if the SMA succeeds at pushing the pair down, it would once ore test the support of the 106.60. The 106.60 level stopped the pair’s sharp decline and kept it up since Thursday.
On the other hand, a breaking of the resistance of the 55-hour SMA would result in the USD/JPY testing the resistance of the 23.60% Fibonacci retracement level at 107.00.
