On Friday, the USD/JPY currency pair traded downwards. During today’s morning, the pair was testing the weekly PP at 106.47.
If the given support level holds, it is likely that a reversal north could occur in the nearest future. In this case the exchange rate would have to surpass the resistance range formed by the 55– and 100-hour SMAs, as well the Fibo 38.20% in the 106.65/106.86 area.
Otherwise, it is likely that some downside potential could prevail in the market. Note that the currency pair could gain support from the 200-hour SMA and the monthly PP circa 106.10.
