On Friday, the USD/JPY currency pair declined to the 111.50 level. During today’s morning, the pair was trading at the given level.
Note that the exchange rate is squeezed by the 55– and 100-hour SMAs, located near 111.80 and 111.15 respectively. Thus, the rate could consolidate in the short term.
However, if the 100-hour SMA does not hold, it is likely that some downside potential could prevail in the market. In this case it is unlikely that the rate could decline below the 200-hour SMA near 110.50.
