On Friday, the USD/JPY currency pair tested the 106.265 level. During today’s morning, the pair touched the 105.95 mark.
Given that the exchange rate is pressured by the 55-, 100– and 200-hour SMAs in the 106.15 area, it is likely that some downside potential could prevail in the market. In this case the rate could gain support from the weekly S1 at 105.85.
If the given support level holds, it is likely that the US Dollar could trade sideways against the Japanese Yen within the following trading session.
