The US Dollar continued to consolidate against the Japanese Yen for the third consecutive session on Friday. The pair, however, did maintain its rather flat tendency downwards, pressured lower by the 55– and 100-hour SMAs.
On Monday morning, the Greenback surpassed the weekly and monthly S1s and fell to the 61.80% Fibonacci retracement line located at 110.20 - a new two-month low. The positioning of technical indicators leads to believe that bears could still prevail in this session, thus sending the pair closer to the weekly S3 at 109.40.
If looking at the upside potential, the US Dollar should find strong resistance near 111.00, as the 55– and 100-hour SMAs and the weekly PP are located there, while the ultimate upside target is the breached senior channel and the 200-hour SMA at 111.30.
On Monday morning, the Greenback surpassed the weekly and monthly S1s and fell to the 61.80% Fibonacci retracement line located at 110.20 - a new two-month low. The positioning of technical indicators leads to believe that bears could still prevail in this session, thus sending the pair closer to the weekly S3 at 109.40.
If looking at the upside potential, the US Dollar should find strong resistance near 111.00, as the 55– and 100-hour SMAs and the weekly PP are located there, while the ultimate upside target is the breached senior channel and the 200-hour SMA at 111.30.
Comment:
The US Dollar has gained 121 pips against the US Dollar since the beginning of this week. Being supported by the 100-hour SMA, the rate managed to breach the weekly PP and the 200-hour SMA and test the weekly R1 at 111.50 early today. This level coincides with the 200-period (4H) SMA.
At the time of this analysis, the Greenback was stranded in a narrow range between this long-term moving average and the 55– and 100-period SMAs between 111.10 and 111.35.
The following hours will determine which force is to prevail today, i.e., a surge in the corresponding direction is expected to follow. Technical indicators are in favour of the bearish scenario with the nearest target being the 110.80 level.
It is likewise possible that this pressure from both sides leaves the rate with no big changes.
The US Dollar has gained 121 pips against the US Dollar since the beginning of this week. Being supported by the 100-hour SMA, the rate managed to breach the weekly PP and the 200-hour SMA and test the weekly R1 at 111.50 early today. This level coincides with the 200-period (4H) SMA.
At the time of this analysis, the Greenback was stranded in a narrow range between this long-term moving average and the 55– and 100-period SMAs between 111.10 and 111.35.
The following hours will determine which force is to prevail today, i.e., a surge in the corresponding direction is expected to follow. Technical indicators are in favour of the bearish scenario with the nearest target being the 110.80 level.
It is likewise possible that this pressure from both sides leaves the rate with no big changes.
Comment:
Strong downside risks prevailed early on Wednesday which resulted in USD/JPY falling 93 pips until late in the evening when this bearish sentiment reversed back to the upside. Significant advances did not follow, being halted by the combined resistance of the 55-, 100– and 200-hour SMAs circa 110.90.
It is likely that the rate lacks the necessary upward momentum to dash through this cluster today, as no important fundamental data releases that could add bullish momentum are not scheduled today. In line with this bearish scenario, the US Dollar is should be pushed back down to the bottom boundary of a five-week falling wedge at 110.00.
In the unlikely event that the rate breaches 110.90, another important resistance is the breached channel line and the weekly R1 at 111.40.
Strong downside risks prevailed early on Wednesday which resulted in USD/JPY falling 93 pips until late in the evening when this bearish sentiment reversed back to the upside. Significant advances did not follow, being halted by the combined resistance of the 55-, 100– and 200-hour SMAs circa 110.90.
It is likely that the rate lacks the necessary upward momentum to dash through this cluster today, as no important fundamental data releases that could add bullish momentum are not scheduled today. In line with this bearish scenario, the US Dollar is should be pushed back down to the bottom boundary of a five-week falling wedge at 110.00.
In the unlikely event that the rate breaches 110.90, another important resistance is the breached channel line and the weekly R1 at 111.40.
Comment:
The US Dollar has surged against the Japanese Yen in the second half of Friday’s trading and on Monday morning.
However, the rate has encountered a resistance cluster near the 110.70 mark. Namely, the weekly PP and the 55-hour simple moving average were providing resistance at that level.
Meanwhile, the pair had no support as low as 110.37, where a monthly pivot point level was located at.
It can be expected that the rate will decline either due to the mentioned resistance or due to additional SMAs approaching from the upside.
The US Dollar has surged against the Japanese Yen in the second half of Friday’s trading and on Monday morning.
However, the rate has encountered a resistance cluster near the 110.70 mark. Namely, the weekly PP and the 55-hour simple moving average were providing resistance at that level.
Meanwhile, the pair had no support as low as 110.37, where a monthly pivot point level was located at.
It can be expected that the rate will decline either due to the mentioned resistance or due to additional SMAs approaching from the upside.
Bulls managed to prevail in the market on Monday and thus send the USD/JPY exchange rate 0.60% higher. Gains above the 110.00 level were stopped by the combined resistance of the 100-hour SMA, the weekly PP and a channel line. By Tuesday morning, the pair had returned for another test of this level.
Even though some gains are possible during the following hours, the US Dollar faces a strong cluster formed by the 55-, 100– and 200-period (4H) SMAs at 111.30. It is unlikely that this resistance is surpassed in this session, as the pair is steadily approaching the overbought territory.
In terms of support, the 55-hour SMA should remain intact. If this level is breached, the next target is the weekly and monthly S1s at 110.40.