The US Dollar accelerated significantly against the Japanese Yen on Monday, thus closing the session with a 93-pip gain. This strong upside momentum prevailed mid-day as a result of which several significant resistance areas were breached, including the weekly R2 and a trend-line at 108.45.
The pair might still edge higher during the early hours of the European session towards the weekly R3 and the 50.0% Fibonacci retracement near 109.10. However, this strong up-move should not be sustainable for long, thus allowing bears to lead the second part of the session.
A significant support cluster is formed by the 55-hour SMA, the weekly R1 and the 38.20% Fibonacci retracement at 108.10. The 100– and 200-hour SMAs are likewise located nearby.