Since the middle of Friday’s trading hours, the USD/JPY has traded between the support of the 113.74/113.81 zone and the resistance of the 50-hour simple moving average at 114.00. However, note that the round exchange rate level of 114.00 could be acting also acting as resistance. Namely, it is the combination of the round exchange rate and the simple moving average.
If the USD/JPY declines below the support zone, it would immediately encounter a strong support zone. Namely, at 113.65 the 100 and 200-hour simple moving averages were strengthening the weekly simple pivot point. Below these technical levels, there is no support as low as 113.00, where the weekly S1 simple pivot point was located at.
Meanwhile, a surge above the 114.00 mark and the 50-hour SMA would most likely result in a test of the resistance zone at 114.22/114.32.
