During Wednesday’s Asian trading session, the USD/JPY managed to pierce the support of the 108.00 level. However, it did not result in a larger decline, as almost immediately the rate reversed from the support of the weekly S2 simple pivot point at 107.88. In the meantime, the currency exchange rate appeared to still find resistance in the 55-hour simple moving average.
In the near term future, the 55-hour simple moving average could push the rate through the support of the weekly S2 at 107.88. An extension of the decline could result in a sharp move due to there being no close by technical support levels as low as the 107.30 level.
On the other hand, a breaking of the 55-hour SMA would most likely result in a test of the resistance of the 100-hour simple moving average. Note that the 50.00% Fibo and the weekly S1 near 108.35 were mostly ignored by the USD/JPY.
