USD/JPY was driven by strong upside momentum that resulted in the rate breaking the down-trend on Monday. The rate halted near the 113.40 mark and retraced back to the given line. Near-term technical indicators are bearish, suggesting that the US Dollar may trade lower. A possible stopping point may be the 100-hour SMA at 112.45. In case of a U-turn at this level, this move may confirm the formation of a minor ascending channel. The next support of importance is the 200-hour SMA circa 112.00. The monthly R1 at 113.94 should be the upside limit for today. On the contrary, the given move above the down-trend may likewise be a false breakout, thus requiring to re-adjust the given line. In this scenario, the rate is expected to test the aforementioned 200-hour SMA.
