On Tuesday, the USD/JPY currency pair declined to the support provided by the weekly S2 and the Fibo 23.60% circa 105.00. During today’s morning, the pair reversed north.
It is likely that the exchange rate could face the resistance formed by the 55-hour SMA near 105.80. Thus, it is likely that some downside potential could prevail, and the rate could target the weekly S3 at 104.52.
Meanwhile, if the predetermined support holds, it is likely that the US Dollar could trade sideways against the Japanese Yen within the following trading session.
