During the previous trading session, the USD/JPY currency pair tried to surpass the resistance level formed by the monthly S2 at 106.54. During Tuesday morning, the pair was testing the support of the 55– and 100-hour SMAs located circa 106.30.
If the given support holds, it is likely, that bulls could prevail in the market within the following trading session. A possible upside target is the Fibonacci 23.60% retracement at the 107.02 mark.
However, if the given support does not hold. The exchange rate could go downwards. Note, that the rat could gain support by the weekly PP, the 200-hour SMA and the monthly S3 in the 105.87/106.14 range.
