The USD/JPY is trapped in between EMAs

The exponential moving averages or EMA could act like good support or resistance zones, especially the ones that are slower like the 200 period or 55 period EMAs. On the daily chart of the USD/JPY we can see that the pair had a good bullish trend until it decided to break below the 55 day EMA (purple line) and came very close to the 200 day EMA (blue line). When this type of price action occurs, normally the price of the asset goes back to the 55 day EMA like it did on the USD/JPY during the last two trading sessions. The price is currently boxed between those two moving averages and it could stay there for a while without taking a clear direction. In order for the bullish trend to come back, the price must break above the 113.00 level. To the downside, a break down below the 111.64 level could clear the road for the pair to drop to the 109.54 level.