Yesterday the USD/JPY failed to soar towards the weekly PP at 111.15. The reason behind the 53-pips drop, most probably, was attributed to the 200-hour SMA that created an impassable resistance barrier. Nevertheless, from the other side the fall of the rate was also constrained by the 55-hour SMA near 110.43. Since the pair proved to be sensitive to these two technical indicators, they can be temporarily marked as closest support and resistance levels, between which the pair is expected to move during today’s trading session. However, given that the upside momentum hasn’t come to an end yet, the buck most likely is going to continue to try to move to the top. A necessary impulse might be given by announcement of the US ISM Non-Manufacturing PMI and Factory Orders at 14:00 GMT.
