USD/JPY has been consolidating for the second consecutive day, as neither bulls nor bears have been able to leave the current range. Support was provided by the 110.80 mark, while the 55– and 100-hour SMAs still remain an unbreakable resistance level for the pair.
If looking at the most junior channel, the US Dollar has diminished its trading range within this pattern. This suggests that the rate could soon follow the gradually-recovering technical indicators. However, 111.40 still remains a very strong resistance area, as the 55-, 100– and 200-period SMAs on both the 1H and 4H time-frames are located there.
It is unlikely that bulls gather the necessary strength to dash through the given barrier today. Bearish gains should be capped near the monthly S1 at 110.37.
