USD/JPY Likely To Test Weekly R1

At the end of last week, the USD/JPY currency pair reversed north from the 200-hour SMA near 105.20.

It is likely that the exchange rate could gain support from the 55-hour SMA and the weekly PP near 105.60. Thus, some upside potential could prevail in the market. The rate could face the resistance level—the weekly R1 at 106.17.

If the predetermined resistance level holds, the currency pair could bounce off and re-test the given support. Otherwise, the pair could target the psychological level at 106.40 in the short term.