The US Dollar was relatively flat against the Yen on Friday, thus remaining in the 109.00/20 area for the whole session. The given lack of momentum changed this morning when the rate managed to reach the weekly PP at 109.62.
The steepness of the downtrend has shifted north, as apparent from the rate’s inability to reach the lower channel boundary. Thus, the formation of a junior channel down was confirmed.
Taking into account bullish technical indicators, the upside limit for this session may be set at the upper boundary of either the senior or junior channel circa 109.80 and 110.20, respectively. The latter is also supported by the 200-hour SMA.
