Traders have not introduced big changes in the USD/JPY exchange rate for the past three sessions. The US Dollar breached the 55-hour SMA to the downside late last week but nevertheless failed to decline. Instead, the pair has been+ pushed in a narrow range between the 55– and 100-hour SMAs.
This failure to approach the senior channel line during the past sessions might point to a change in sentiment. Technical indicators are likewise more in favour of the bearish scenario today.
The nearest support is the weekly PP at 111.85. However, a more probable point of reversal could be the monthly R1 and the 55-period (4H) SMA at 111.50.
