On Thursday, the USD/JPY currency pair tried to breach the resistance provided by the 55-hour SMA. During today’s morning, the pair continued to test the given resistance.
If the predetermined moving average holds, it is likely that some downside potential could prevail in the market. Note that the nearest support level—the monthly S1, is located at 106.56.
Otherwise, it is likely that bulls could prevail in the market. Meanwhile, it is unlikely that the exchange rate could exceed the 100– and 200-hour SMAs in the 107.20 area.
