The US Dollar continues moving in a narrow ascending channel against the Yen. The pair’s movement during this time has been supported by the 55-, 100– and 200-hour SMAs. The pair even breached the prevailing two-month channel down and reached its three-week high of 107.00 by early Thursday.
It is likely that the Greenback tries edging higher during the following hours, setting the weekly and monthly R1s circa 107.50 as a possible upside target. However, it seems that bulls might soon exhaust their pressure and therefore allow the bearish sentiment to take over the market once again.
In line with this scenario, the rate should return near the support of the 55– and 100-hour SMAs or, in case this level is breached, the weekly and monthly PPs and the 200-hour moving average near 106.00.
