The US Dollar managed to maintain its upside momentum on Tuesday, thus gaining 0.55% against the Japanese Yen. As a result, the pair was trading near the 110.40 mark on Wednesday morning where the 61.80% Fibonacci retracement is located.
Technical indicators are gradually starting to edge lower; thus, it is likely that the price follows soon. The nearest support is set by the upper boundary of the breached wedge pattern at 109.90, while a more important support area is 109.60/40 due to the 100– and 200-hour SMAs.
Meanwhile, a significant resistance barrier is the weekly R2 and the monthly R1 at 110.70. Even if the pair still manages to appreciate during the first part of the day, this level is unlikely to be surpassed.