The USD/JPY extended its surge and did not retrace back to the 55-hour SMA. Instead, the currency exchange rate surged and by the middle of Friday’s trading had reached the 108.50 mark. It occurred due to the speech of the head of the Federal Reserve Jerome Powell, which caused a major surge of the US Dollar against all other assets.
In regards to the near term future, the rate was expected to test the psychological resistance of the 108.50 mark. If this level gets passed, the rate could aim at the 109.00 level. Note that on Friday the 109.00 mark was strengthened by the weekly R3 simple pivot point at the 109.02 level.
On the other hand, the rate is highly overbought, as it has left far below it the 55 and 100-hour simple moving averages, which were pushing the rate up. Due to that reason, the pair could trade sideways below the 108.50 level.
