As it was expected, the USD/JPY had become overbought due to the jump that occurred on Tuesday. This resulted in a decline, which by the middle of London’s Wednesday session had reached 110.40.
The rate was expected to look for support in the 55-hour simple moving average and the lower trend line of an ascending channel pattern near 110.30.
If the pair finds support in this level, it should test the previously broken resistance levels near 110.50. At that level the weekly R1 and a monthly pivot point were located at.
On the other hand, the rate might break the support of the two mentioned levels and decline down to the 100-hour SMA, which was located just above 110.00.
Meanwhile, note that at 18:00 GMT the FOMC Meeting Minutes will impact all USD pairs.