USD/JPY Tests Resistance Level

During Friday morning hours, the USD/JPY currency pair was testing the resistance level formed by the Fibo 23.60% and the 200-hour SMA at 105.03.

If the predetermined resistance holds, it is likely that the exchange rate could trade downwards within the following trading session. In this case the rate could decline to the 104.40 mark.

In the meantime, note that the currency pair could gain support from the 55– and 100-hour SMAs, as well the weekly S1 in the 104.70/104.80 area. Thus, the pair could target the 105.60 level.