After breaking the channel up pattern, the USD/JPY declined. However, the decline was short, as the pair found support in the 55-hour simple moving average. The SMA provided enough support to cause a surge, which reached the 112.00 level.
By the middle of Thursday’s trading, the currency exchange rate fluctuated sideways below the 112.00 mark.
In the near term future, the sideways trading could be ended by the approaching support of the 55-hour simple moving average. A surge above the 112.00 level would have no technical resistance as high as the weekly R3 simple pivot point at 113.02. Meanwhile, note that the 112.50 and 113.00 levels were highly likely going to provide resistance.
On the other hand, a bounce off from the resistance of the 112.00 level and a decline would have to pass the support of the 55-hour SMA at 111.57, the weekly R1 simple pivot point at 111.34 and the 100-hour SMA at 111.20.
