The strong plunge of the USD/JPY pair early on Tuesday was stopped by the combined support of the weekly S1, the monthly PP and the senior channel at 109.60. This was followed by a period of appreciation which allowed the US Dollar to return back to 110.30.
This territory is likely to provide considerable resistance to the pair, as it is strengthened not only by the 61.80% Fibonacci retracement and all three moving averages on the one-hour time-frame, but also the 55-period (4H) and 200-day SMAs. This resistance cluster should pressure the rate lower until the weekly S1 or the senior channel at 109.72 and 109.60, respectively.
In case the rate gathers the necessary bullish sentiment to breach this area, the Greenback should test its June high at 111.00.
