On Friday, the USD/JPY retraced down to the support of the 55-hour simple moving average and the 110.00 mark. On Monday, the pair was still supported by the SMA. In the meantime, it faced the resistance of the 110.20 level.
In regards to the near term future, the rate was expected to get squeezed in between the SMA and the 110.20. level. The squeeze should result in a break out to the downside or upside.
In the case of a break out down, the rate would aim at the 100-hour SMA. On the other hand, a break out upwards would test the pivot point at the 110.25 level
