Yesterday, the USD/JPY currency pair reversed south from the resistance level—the Fibo 23.60% at 105.03.
It is likely that some downside potential could prevail in the market, as the exchange rate is pressured by the 55– and 100-hour SMAs near the 104.80 mark. In this case the rate could re-test the psychological level at 104.40.
In the meantime, note that the currency pair could gain support at the 104.60 level. Therefore, the pair could trade sideways within the following trading session.
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