During today’s morning, the USD/JPY currency pair started to test the resistance level—the weekly R1 at 105.28.
If the predetermined resistance level holds, it is likely that the exchange rate could bounce off and decline to the psychological level at 104.60 within the following trading session.
In the meantime, note that the rate could gain support from the 55– and 100-hour SMAs, as well the Fibo 23.60% in the 105.00 area. Thus, some upside potential could prevail in the market, and the pair could target the weekly R2 at 105.80.
