The USD/JPY currency exchange rate has gained new high level, as the 55-hour simple moving average provided support and pushed the rate up. By the middle of Thursday’s trading, the pair had almost reached the 107.40 level. Take into account that the weekly R1 simple pivot point at 107.25 failed to provide any resistance.
In the near term future, the pair was expected to continue to surge, as it had no technical resistance as high as the 107.86 level, where the weekly R2 simple pivot point was located at. However, as the weekly R1 simple pivot point did not provide resistance, it is unlikely that the one at 107.86 would stop the pair.
On the other hand, if one looks at the previous moves of the rate, it can be spotted that the surge from time to time consolidates by retracing back down to the 55-hour simple moving average or trading sideways. Due to the rate moving 40 pips away from the SMA, a consolidation was highly likely to occur during Thursday’s later trading hours.