The testing of the 110.50 level’s resistance was short, as during one hour it was passed. On Wednesday morning, the USD/JPY had almost reached the 111.00 level before retracing back down. In the meantime, note that the 110.40 and 110.20 levels had provided resistance and support.
In regards to the near term future, the pair’s retracement down was expected to look for support. Support could be found in the mentioned 110.40 and 110.20 levels. In addition, the 110.20 mark could be strengthened by the weekly R1 simple pivot point and the 55-hour simple moving average.
If the mentioned support levels hold, the rate would recover and most likely make another attempt to pass the resistance of the 111.00 mark.
On the other hand, a passing of the support levels could result in a decline to the support of the 61.80% Fibonacci retracement level at 109.83 and the 100-hour simple moving average.