Despite a brief attempt to appreciate against the Japanese Yen on Wednesday morning, the Greenback continued to be driven by downside risks for the second consecutive session. By Thursday morning, this bearish momentum had resulted in the pair reaching a new 2016/2017 low of 106.50.
If looking at the chart, some southern potential down to the 106.00 mark is still apparent—a level where the bottom boundaries of two prevailing descending channels are located. In terms of pivot points, the nearest support is provided by the weekly S3 at 105.56.
Following such a steep two-day decline, the US Dollar should start recovering in the nearest time. Even if the bearish sentiment prevails today, the expected advance is expected to happen on Friday.
