The previously-low volatility of USD/JPY changed early today when the Bank of Japan pledged to keep its interest rates at low levels, as the rate started fluctuating between the 200-hour SMA and a senior channel line. The US will release several data sets today; thus, the current movement sideways might end today.
Given that the Greenback has moved above the 55– and 100-hour and 200-period (4H) SMAs, these moving averages might provide support for the rate.
However, traders should still consider the strong resistance cluster set by the 55– and 100-period SMAs and the weekly R1 at 111.55. A breakout from this level should be followed by a surge up to 113.00 in the medium term. Technical indicators suggest that this appreciation might occur within the following week.
