The US Dollar continued to trade in a short-term ascending channel against the Yen. The second bottom confirmation was provided early on Tuesday after which the pair accelerated towards the weekly PP at 109.70.
By Wednesday morning, it had returned for a re-test of the 200-hour SMA. Technical indicators suggest that this session might mark a further decline, possibly down to the nearest support of the weekly S1 at 108.91 or the bottom channel line located nearby.
Given that no significant fundamentals are to be released today, the Greenback might spend this session within the 108.80/109.70 range. Subsequently, this currency should gain strength and breach the most junior channel drawn on the chart with dashed lines.
