Following a reversal from the senior channel on Monday, the US Dollar has since continued to appreciate against its Japanese counterpart for the fourth consecutive session. Thus, the pair is gradually approaching a medium-term trend-line and the weekly R1 at 110.60.
The strong hourly surge on Wednesday morning was strong enough to breach the 55-, 100– and 200-period (4H) and the 200-hour SMAs near 110.10. This now-support level was re-tested unsuccessfully once again later in the day.
Given the strength of this cluster, it is likely that the Greenback is pressured to the upside today. The ultimate daily high today should be the monthly R1 at 110.80.
