The US Dollar gained 66 pips against the Japanese Yen on Monday. The rate breached the weekly R1 and the 61.80% Fibonacci retracement at 110.16 and has since fluctuating slightly between this and the 110.50 mark.
It is expected that upside risks still prevail until the weekly R2, the monthly R1 and the upper channel line are reached at 110.75. This point should provide strong resistance, thus forcing bulls to ease their upside momentum. The pair should subsequently reverse to the downside and target the combined support of the 55-, 100– and 200-hour SMAs and the weekly PP in the 109.60/85 area.
In case no fundamental events shake the market significantly in this session, the aforementioned support and resistance levels should force the pair to remain within the 109.60/110.75 range today.
