Yesterday, the USD/JPY currency pair tested the resistance level formed by the weekly R1 at 105.77.
Given that the exchange rate is supported by the 55-, 100– and 200-hour SMAs near 105.50, it is likely that some upside potential could prevail in the market. In this case the rate could target the 106.00 level.
However, if the predetermined resistance level holds, it is likely that the currency pair could trade sideways within the following trading session.
