The USD/JPY was characterised by low volatility on Wednesday morning which was caused by the failure of bulls to overcome the 55– and 100-hour SMAs for several hours. This resistance cluster was eventually breached, but further advance was limited, as the weekly PP and the 200-hour SMA were likewise located nearby.
In general, the US Dollar is starting to recover against the Yen. However, the high positioning of technical indicators suggest that the most recent movement up might not be sustainable.
Apart from the 200-hour SMA which was already breached several hours ago, the nearest resistance is set by the boundaries of two channels near the 109.70 mark. Even if this area does not hold, the Greenback might reverse near 110.00.
