The US Dollar continues to gain momentum against the Yen for the third consecutive session. The previously-drawn narrow channel up held strong on Tuesday even when the pair breached several notable resistance levels, such as the weekly PP, the monthly S1 and the 200-hour SMA. As a result, the US Dollar was located near the senior channel by Wednesday morning.
Converging technical indicators suggest that the bearish sentiment might take over the market soon just to push the rate away from the overbought territory. This decline should be limited by the long-term moving average and the monthly S1 near 107.20.
Conversely, notable advances should be stopped by the upper boundary of the senior channel and the weekly S1 circa 108.30.
