On Monday, the USD/JPY currency exchange rate was facing the resistance of the 55 and 100-hour simple moving averages near 110.80. In the meantime, the pair had the support of the weekly simple pivot point, the 200-hour SMA and the last week’s low level in the 110.56/110.49 zone.
In the near term future, the pair was expected to get squeezed in between the resistance and support levels. In theory it should result in a break out either up or down.
If the pair passes the resistance of the 55 and 100-hour simple moving averages, the rate would most likely reach for the last week’s high level zone from 111.00 to 111.11.
On the other hand, a possible decline below the support levels and the 110.50 mark could result in a decline to the 110.00 mark. Note that the 110.00 mark was being strengthened by the weekly S1 simple pivot point.
