Since Monday, the USD/JPY currency pair has been consolidating in the 104.20 area.
It is likely that the exchange rate could gain support from the 55-hour moving average near 104.10 and extend gains in the short term. In this case the rate could target the resistance formed by the Fibo 23.60% and the weekly R2 near 105.00.
In the meantime, note that the currency pair could face the resistance level—the weekly R1 at 104.53. Thus, the pair could bounce off to the support area formed by the 100– and 200-hour SMAs, as well the weekly PP in the 103.40/103.75 area.
