On Monday, the USD/JPY currency pair surpassed the monthly PP at 106.09. During today’s morning, the pair was trading near the given level.
It is likely that now the monthly PP could provide support to the exchange rate. Thus, it is likely that some upside potential could prevail in the market, and the rate could target the weekly R1 at 106.51.
In the meantime, it is unlikely that some downside potential could prevail in the market as the currency pair could gain support from the 55-, 100– and 200-hour SMAs in the 105.60/105.90 area.
