USD/JPY’s decline on Wednesday was stopped at 110.60 when the rate reversed to the upside and breached the 200-period (4H) SMA. Thus, the bottom boundary of the senior channel was adjusted to include this latest development.
The Greenback later breached the 55– and 100-hour SMAs for a brief period of time, but failed to accelerate and thus remained fluctuating there until Friday morning.
Technical indicators are bullish in this session. It means that the rate could be supported by the breached 200-period SMA, thus being able to reach for the 200-hour and 100-period SMAs and the weekly PP circa 112.00. This area is regarded as today’s highest point if no fundamentals disrupt this assumption.
In case 111.00 is breached to the downside, the US Dollar should not fall below 110.50.
