On Monday the USD/JPY currency pair traded near the 110.50 mark. At that level it was being kept by the resistance of the 200-hour simple moving average. In addition, the 200-hour SMA was about to be strengthened by the 55 and 100-hour SMAs, which were located just above.
However, more notable was the fact that the rate had fallen below the support of a long term ascending pattern. The event took place suddenly, as the 55-hour SMA failed to provide support.
In regards to the future, the rate is likely going to be beaten down by the SMAs to the 110.20 level, where the 61.80% Fibonacci retracement level is located at.
