Bulls managed to prevail in the market on Monday and thus send the USD/JPY exchange rate 0.60% higher. Gains above the 110.00 level were stopped by the combined resistance of the 100-hour SMA, the weekly PP and a channel line. By Tuesday morning, the pair had returned for another test of this level.
Even though some gains are possible during the following hours, the US Dollar faces a strong cluster formed by the 55-, 100– and 200-period (4H) SMAs at 111.30. It is unlikely that this resistance is surpassed in this session, as the pair is steadily approaching the overbought territory.
In terms of support, the 55-hour SMA should remain intact. If this level is breached, the next target is the weekly and monthly S1s at 110.40.