On Thursday, the USD/JPY currency pair tested the support formed by the 200-hour SMA and the monthly PP at 106.02. During today’s morning, the pair continued to test the given resistance.
If the predetermined support holds, it is likely that some upside potential could prevail in the market, and the exchange rate could target the resistance formed by the Fibo 38.20% and the monthly R1 at 106.90.
In the meantime, note that the rate would have to exceed the weekly R1 at 106.48. If the given level holds, it is likely that the pair could trade sideways in the short run.
