On Tuesday, the US Dollar surged by 55 pips or 0.50% against the Japanese Yen. The currency pair breached the 55– and 100– hour SMAs during Tuesday’s trading session.
Currently, the exchange rate is trading near the upper line of a descending channel pattern and could be set for a breakout.
If the breakout occurs, a surge towards the 110.40 area could be expected within this session.
However, if the channel pattern holds, bears might drive the currency exchange rate lower today.