The USD/JPY continued to trade between the weekly S2 simple pivot point’s support and the resistance of the 55-hour simple moving average. However, the situation had changed, as the rate was now piercing the support level and not the resistance. Namely, a decline was more possible than a surge.
In the case of the support of the weekly S2 simple pivot point failing, the rate would have no technical support as low as the 107.20 level, where the lower trend line of a channel down pattern was located at.
On the other hand, a breaking of the resistance of the 55-hour simple moving average could result in a test of the resistance of the 100-hour simple moving average first and afterwards the upper trend line of the mentioned pattern.
