The US Dollar depreciated against the Japanese Yen bounced off a junior ascending channel at 109.178 in the midnight of Monday’s trading. The whole movement decrease totaled negative 90 pips or 0.81%.
However, the US Dollar has recovered itself which may be a bullish signal. The indicators predict the main currency to go upward reaching the 55– hour simple moving average which could be the day’s highest resistance level for the trading session. Currently, the pair is located near a support level formed by the monthly S1.
Given that the three SMAs are above the price, the upward momentum is likely to continue during the following trading session. Meanwhile, technical indicators flash neutral signals on the 4H time frame chart. This means that the price movement upward could be insignificant, thus more likely resulting in a move sideways.
