The US Dollar maintained its movement sideways against the Yen for the second consecutive day on Wednesday. The pair failed to surpass the 110.40 mark mainly due to an important resistance level which has previously provided a strong barrier for the Greenback.
On Thursday morning, the pair was supported by the 55-hour SMA. It is likely that this moving average pressures the rate higher towards the weekly R2 at 110.66. A breakout did occur at the time of this analysis, but it is still yet to be seen if this bullish momentum is maintained. A successful breakout should mean a test of the 111.00 mark or the weekly R3 at 111.30.
If looking at important support levels, the pair is likely to be hindered near 109.70, as the 100– and 200–hour SMAs are located nearby.
