Weaker US Dollar put downward pressure on USD/JPY early on Monday, thus allowing the pair to plunge down to the 106.50 mark. The subsequent hours saw a slight recovery up to 117.00.
The rate’s movement since mid-yesterday has been bounded between the 55-, 100– and 200-hour SMAs. It is likely that the direction of the breakout determines the US Dollar’s movement during the following 24 hours.
Technical indicators are more supportive of the bearish scenario that should send the rate towards the weekly S1 at 106.00—a move that would likewise confirm the upper boundary of a short-term channel down.
On the other hand, a northern breakout of the 100-hour SMA and the weekly PP circa 107.00 is expected to result in a surge up to the 107.50 mark.
