The USD/JPY did not need the support of the 50.00% Fibonacci retracement level at 108.35 to recover. The rate found support just above the 108.40 mark and surged to the 55-hour simple moving average, which provided resistance. By the middle of Wednesday’s trading, the rate was making another attempt to pass the 55-hour SMA.
If the simple moving average fails to provide resistance, the pair would most likely look for resistance in the 100-hour simple moving average near 108.80. In the case of the 100-hour SMA, the rate could aim at the resistance cluster that is located from 108.90 to 109.00.
On the other hand, the 55-hour SMA could hold and push the rate into a test of the previous low levels above the 108.40 level and afterwards the 50.00% Fibonacci retracement level at 108.35.