The resistance of the 55-hour simple moving average did not hold out on Wednesday. Moreover, by the middle of Thursday’s European trading hours, the rate passed the resistance of the 100 and 200-hour simple moving averages and the weekly simple pivot point.
Namely, at mid-day the rate had reached above the 109.00 level and the US Dollar had regained all losses suffered against the Japanese Yen since March 18.
In the near term future, the rate was expected to reach and test the resistance of the March high levels in the 109.25/109.35 zone. If the resistance zone holds, the rate could either trade sideways below it or decline back down to the support of the 109.00 level, the weekly simple pivot point and the 200-hour simple moving average.
On the other hand, a failure of the zone to provide resistance could result in a surge up to the weekly R2 simple pivot point at 109.73 and the June high level at 109.83, where a 61.80% Fibonacci retracement level is located at.
