On Monday, the USD/JPY traded above the 106.50 mark, which appeared to be providing support to the rate. In the meantime, it has to be taken into account that the rate was supported on Friday by the 55-hour simple moving average, as it pushed the USD/JPY up.
In the near term future, the rate was expected to trade sideways until the 55-hour SMA moves up and provides support. In this case scenario, the rate would start a surge and test the resistance of the 38.20% Fibonacci retracement level at the 106.86 level and afterwards the 107.00 mark.
On the other hand, the 55-hour SMA could fail to provide support. In this case the rate could decline to the weekly simple pivot point at 106.09. Note that the pivot point could be soon supported by the 100 and 200-hour SMAs.
