Since Tuesday, the USD/JPY currency pair has been testing the resistance provided by the 200-hour SMA and the weekly PP near 104.20.
If the predetermined resistance holds, it is likely that the exchange rate could trade downwards in the short term. Note that the nearest possible support level—the weekly S1, is located at 103.67.
Meanwhile, note that the rate could gain support from the 55– and 100-hour moving averages near 104.10. Thus, some upside potential could prevail in the market.
