USD/JPY Could Extend Gains

Since Friday, the USD/JPY currency pair has been trading sideways in the 103.70/103.90 range.

It is likely that some upside potential could prevail in the market due to the support area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 103.65/103.75 area. The rate could target the 104.10 mark.

However, if the predetermined support area does not hold, bears could prevail in the market. In this case the currency pair could target the weekly S1 located at 103.42.