On Monday, the USD/JPY currency pair failed to exceed the resistance provided by the 100– and 200-hour SMAs. During today’s morning, the pair was testing the 55-hour SMA near 105.74.
If the 55-hour moving average holds, it is likely that some downside potential could prevail in the market, and the exchange rate could target the support formed by the monthly S1 and the Fibo 23.60% at 105.00.
On the other hand, the rate could try to exceed the given resistance. If it does not hold, it is likely that the pair could target the weekly R1 at 106.48.
