On Monday, the USD/JPY currency pair consolidated around the weekly S1 at 105.37. During today’s morning, the pair was testing the 55-hour SMA near 105.75. If the given moving average holds, it is likely that some downside potential could prevail in the market. In this case the exchange rate could gain support from the Fibo 23.60% at 105.03.
Otherwise, it is likely that the currency pair could trade upwards in the nearest future. Note that the pair would have to exceed the monthly S1 at 106.05.
