The US Dollar broke a significant level of resistance against the Japanese Yen. Namely, the resistance of a medium descending pattern that captured the week long sideways trading below the 110.00 level was broken. The event signals the end of sideways trading.
As the pair continues to surge upwards, it will face the weekly R1 at 110.14. After breaking the weekly R1, the pair is set to reach for the next resistance level at the 110.50 mark.
On the other hand, at any moment the pair might begin to consolidate its gains by trading sideways and waiting for the support of the 55 and 100-hour simple moving averages to approach the rate and initiate a continuation of the surge.