On Wednesday, the USD/JPY currency pair reversed south from the resistance level—the weekly R1 at 104.72.
It is likely that the exchange rate could gain support from the 100– and 200-hour SMAs, as well the weekly PP in the 104.25 area. Thus, some upside potential could prevail in the market, and the rate could re-test the given resistance level.
In the meantime, note that the currency pair could be pushed down by the 55-hour moving average near 104.40. In this case the pair could target the psychological level at 103.80.
