HomeContributorsTechnical AnalysisUSD/JPY Analysis: Gains Momentum Early On Tuesday

USD/JPY Analysis: Gains Momentum Early On Tuesday

Minor downside risks dominated the USD/JPY exchange rate on Monday, as it closed the session with a 60-pip fall.

The lack of bearish stimulus did not allow the Greenback to breach the combined support of the 100– and 200-hour SMAs circa 106.20. Thus, the Asian session started with a solid surge which erased all losses accumulated during the previous day.

The pair is currently trading in a two-week ascending channel. Given that its lower boundary was not reached yesterday, the pair could reverse significantly its current market sentiment and go for a test of this line, the weekly PP and the 100-hour SMA at 106.40 during the first part of the day. The remaining session is likely to be dominated by the US inflation data released at 1230GMT.

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