At the end of last week, the USD/JPY exchange rate reversed north from the Fibo 23.60% at 105.03 and jumped to 105.60.
It is likely that the currency pair could gain support from the 55-, 100– and 200-hour SMAs in the 105.50 area and trade upwards in the short run. Note that the pair would have to exceed the weekly R1 at 105.77.
If the given resistance level holds, it is likely that the exchange rate could trade sideways in the short run. Otherwise, the rate could target the psychological level at 106.40.
