The USD/JPY started the week’s trading with a large drop at the start of Monday’s trading. It traded with large volatility until it finally found equilibrium near 110.70. In general, the rate has two possible scenarios.
In the bullish scenario the rate would pass the resistance of the weekly S1 at 110.81 and begin a surge up to the 55 and 100-hour simple moving averages near 111.25.
On the other hand, the currency rate might drop down to the 110.51 level. At that level the weekly S2 was located at.
