The strong bearish pressure that dominated the USD/JPY exchange rate on Tuesday continued to prevail in this session, as well.
The pair showed some signs of a recovery during yesterday evening; however, the unsuccessful test of the weekly S1 at 107.81 sent the pair for a further plunge down to the weekly S2. As a result, the Greenback reached a new 2017/2017 low of 106.85.
Technical indicators have been sent in the strongly oversold area; thus, a possible recovery up to the 55– and 100-hour SMAs near 108.50 might be due in the nearest time. However, bears could likewise be reluctant to abandon their positions and therefore continue pressuring the US Dollar lower down to the bottom boundaries of two descending channels near the 106.00 area.
