The USD/JPY currency pair has touched the psychological level at 106.20.
It is likely that the exchange rate could face the resistance level—the weekly R2 at 106.28. Thus, the rate could bounce off and decline to the support area formed by the 55-, 100– and 200-hour SMAs, the weekly R1 and PP, as well the Fibo 23.60% in the 105.03/105.62 range.
In the meantime, if the predetermined resistance level does not hold, the currency pair could continue to extend gains in the short run. Note that the nearest resistance level, formed by the Fibo 38.20% and the weekly R3, is located at 106.86.
