On Monday, the USD/JPY currency pair tumbled to the support provided by the 200-hour SMA near 110.50. During today’s morning, the pair was testing the given support.
If the given moving average does not hold, it is likely that some downside potential could prevail in the market. Note that the exchange rate would have to surpass the weekly S1 at 110.07.
On the other hand, the US Dollar could trade sideways against the Japanese Yen between the given SMA and the weekly PP at 111.15. Also, it is unlikely that bulls could prevail due to the resistance formed by the 55– and 100-hour SMAs near 111.30.
