The USD/JPY broke the resistance of the weekly R1 at 113.36 during a second attempt. After the breaking of the resistance the rate surged during the next two hours until it reached the upper trend line of a medium term ascending pattern. The rate’s surge was forced into a retracement by the trend line.
In general, the exchange rate is expected to continue to trade sideways between the weekly R1 at 113.36 and the weekly R2 at 113.74 until it does not face the resistance line of the ascending pattern.
Meanwhile, note that the 55-hour SMA should catch up to the rate. When that occurs, the surge is expected to resume, as additional support will signal a surge.
