The US Dollar was fluctuating considerably against the Yen during the previous trading session. The pair tried to edge higher in the morning but was stopped by the strong resistance of the 55-, 100– and 200-hour SMAs. It subsequently fell down to the 108.30 mark—slightly above the bottom boundary of a medium-term channel.
The US Dollar might still appreciate in this session; however, gains should be limited by the aforementioned SMAs and the weekly PP near the 109.20 mark. This could pressure the pair down to the weekly S1 at 108.00.
Given that there is a bank holiday in Japan and no fundamentals coming from the United States, this session could mark no major changes to the pair’s current position, unless high turbulence in the equities market result in higher demand for the Yen.
