On Monday, the USD/JPY currency pair traded sideways around the 105.90 level. During today’s morning, the pair jumped to 106.40.
From the one hand, it is likely that some upside potential could prevail in the market. In this case the exchange rate could face the resistance area formed by the weekly R1 and the Fibo 38.20% in the 106.65/106.86 range.
From the other hand, it is likely that a reversal south could occur in the nearest future. Meanwhile, it is unlikely that the rate could decline below 105.90 due to the support formed by the 55– and 100-hour SMAs, as well the weekly PP.
