On Friday, the USD/JPY currency pair skyrocketed to 106.00. During today’s morning, the pair tested the monthly PP at 106.09.
Given that the exchange rate is pressured by the 200-hour SMA near 107.75, it is likely that some downside potential could prevail in the market. In this case the rate could decline to the Fibo 23.60% at 105.03.
Meanwhile, note that the currency pair could gain support from the weekly PP at 105.41. Thus, it is likely that the US Dollar could consolidate against the Japanese Yen in the short run.
