The bearish momentum that prevailed on Tuesday continued to dominate the market on the following day, as well. As a result, the US Dollar experienced a considerable 0.98% fall against the Yen on Wednesday.
It seems that this session might finally mark a change in the previous sentiment. The pair reached the weekly S3 near the 108.90, but was rather reluctant to edge lower. This mark coincides with the bottom boundary of a five-week descending channel.
Thus, the base scenario favours a period of appreciation towards the 110.20 area where the weekly S1, the monthly S2 and the 55– and 100-hour SMAs are located.
In case high volatility is not apparent in this session, the Greenback might remain near the breached senior channel circa 109.60.
