Yesterday, the USD/JPY currency pair tested the support level formed by the monthly S3 at 101.61. During Tuesday morning, the pair jumped to the resistance level—the monthly S2 and the 100-hour SMA at 104.56.
If the given resistance holds, it is likely that a reversal south could occur in the nearest future. In this case the exchange rate could re-test the given support level.
Otherwise, it is likely that the US Dollar could continue to appreciate against the Japanese Yen. In this case the pair could face the resistance formed by the weekly PP, the monthly S1 and the 200-hour SMA in the 106.32/106.82.
