Since Wednesday’s morning trading hours, the USD/JPY has traded sideways below the 110.80 level. The rate faces a resistance zone from 110.80 to 111.00. In the meantime, the support of the 55-hour simple moving average had caught up with the rate.
In the case of the 55-hour simple moving average providing support and causing a surge, the rate could pierce the resistance of the 110.80 to 111.00 zone. A following surge might reach for the resistance of the weekly R3 simple pivot point at 111.68 and afterwards the 112.00 mark.
On the other hand, if the 55-hour SMA fails, the rate could decline to the support of the weekly R1 simple pivot point at 110.24 and the 100-hour simple moving average.
