The USD/JPY exchange rate bounced off the psychological 111.00 mark mid-Tuesday and was heading towards the combined resistance of the 55-, 100– and 200-hour SMAs and the weekly PP at 111.40. This cluster provided an unbreakable resistance that stopped any attempts to accelerate from the senior channel.
The positioning of technical indicators suggest that the rate is likely to test this area one more time today. The Greenback surpassing this level should not result in large gains, as moving averages on both the 1H and 4H time-frames have been successfully limiting the pair since mid-July.
The 100-period SMA and the monthly PP are located at 111.77. In terms of support, there is solid downside potential until the weekly S1 at 110.65.
