Despite piercing the support of the 113.40 level on Thursday, the USD/JPY did not extend the decline. Instead, the pair found support at 113.25 and recovered. At mid-day on Friday, the rate had retraced to the 100-hour simple moving average at 113.79.
A potential continuation of the surge might reach for the combined resistance of the weekly simple pivot point at 113.89 and the 200-hour simple moving average at 113.92. Above these levels, the weekly R1 at 114.36 might provide additional resistance.
However, a decline of the USD/JPY might look for support in the 55-hour SMA at 113.66 and the 113.40 level.
