Yesterday, the USD/JPY currency pair failed to exceed the 200-hour moving average near 103.80. During Tuesday morning, the pair was testing the resistance formed by the weekly PP and the 55-hour SMA near 103.45.
If the predetermined resistance holds, it is likely that some downside potential could prevail in the market. Note that the nearest support level—the weekly S1, is located at 102.77.
In the meantime, it is unlikely that bulls could prevail in the market, and the exchange rate could exceed the weekly R1 located at 104.05 within the following trading session.
