USD/JPY meets strong resistance at 113.00

As it was suggested yesterday, the currency exchange rate made a fully-fledged breakout from a rising wedge formation after encountering strong resistance posed by the 50% Fibonacci retracement level at 113.00.

However, the plunge was deep, as southern side was secured by two moving averages but most importantly by another 50% retracement level located at 112.45.

As long as there are no disappointing political news coming from the United States, the rate is projected to keep climbing back to the 113.00 mark.

But before that it might be temporarily stopped by the monthly PP at 112.70. Nevertheless, the rising 55- and 100-hour SMA are expected to continue stimulating the upwards movement and simultaneously secure the bottom boundary of a currency active junior ascending channel.

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