On Wednesday, the USD/JPY currency pair skyrocketed to the weekly R2 at 112.37, and dropped dramatically to the 111.85 level.
Given that the pair is being pressured by the 55-, 100– and 200-hour SMAs, currently located circa 111.90, it is likely, that some downside potential prevails in the market. In this case, the pair has to surpass the weekly S1 at 111.78.
However, if the given resistance does not hold, it is expected, that the exchange rate trades down. A possible upside target is the resistance cluster formed by the weekly and the monthly R1s in the 112.11/112.17 range.
