As the rate was testing the resistance of the 110.40 level, the US ADP payrolls caused an all out USD drop. On the USD/JPY charts it resulted in a decline to the support of the 200-hour simple moving average at 109.90. By the start of Thursday’s European trading hours, the SMA was still keeping the rate up, as it tested its support three times.
If the SMA manages to hold and a surge follows, the rate could once again reach the 110.40 level and test its resistance. Above the 110.40 mark, the 110.50 level and the zone above it might provide resistance.
Meanwhile, a decline below the SMA could look for support in the weekly simple pivot point at 109.86. However, note that previously the pivot point failed to provide support. Due to that reason, a potential decline would most likely find support in the 109.60 level.
