On Monday, the USD/JPY currency pair depreciated significantly. During today’s morning, the pair was trading at 105.60.
From the one hand, it is likely some downside potential could continue to prevail in the market. In this case the exchange rate could target the support formed by the weekly S2 and the Fibo 23.60% circa 105.00.
On the other hand, it is likely that a reversal north could occur in the nearest future. In the meantime, it is unlikely that the currency pair could exceed the 55– and 200-hour SMAs near 106.30.
