The US Dollar rallied significantly against the Yen on Wednesday, seemingly being supported by a decrease in risk sentiment. The pair gained 1.43% throughout the day until it reversed at the psychological 107.00 mark.
Bears managed to re-gain some of their lost positions during the Asian session, thus pushing the rate towards the upper boundary of the previously-breached channel. The same bearish sentiment is likely to dominate the market today.
The Greenback could target a support cluster formed by the 55– and 200-hour SMAs near 105.80. This level should likewise mark the ultimate low for today.
Conversely, bulls might still try to use the slight potential up to the 107.40 level where the monthly PP and the weekly R2 are located.
