Yesterday, the USD/JPY currency pair tried to surpass the resistance formed by the 55-, 100– and 200-hour SMAs in the 106.00/106.24 range. During Tuesday morning, the pair was trading at the 105.75 level.
Given that the exchange rate is still pressured by the given moving averages, it is likely that some downside potential could prevail in the market in the short term. Note that the nearest support level is the weekly S1 at the 104.91 mark.
However, if the given moving averages do not hold, it is expected, that the US Dollar could try to appreciate against the Japanese Yen. But it is unlikely, that the rate could exceed the monthly S2 at 106.54.
