Yesterday, the USD/JPY currency pair failed to exceed the 106.20 level.
It is likely that the exchange rate could gain support from the 100-hour SMA and the weekly R1 in the 105.60 area. Thus, the rate could try to exceed the resistance level—the weekly R2 at 106.28 in the short term.
In the meantime, note that the currency pair is pressured by the 55-hour SMA near 105.80. Thus, some downside potential could prevail in the market, and the pair could decline to the support provided by the 200-hour SMA, the Fibo 23.60% and the weekly PP in the 105.02/105.20 range.
