The USD/JPY currency pair is fluctuating in between the 55– and 100-hour SMAs for the third consecutive session. These moving averages pushed the rate slightly lower, but the pair has nevertheless remained in the 110.80/111.20 range.
It is apparent on the chart that the US Dollar is approaching the senior channel near 110.70. This support should not be breached in this session, thus giving more weight to the bullish scenario. The Greenback could be guided by the 200-period (4H) and 100-hour SMAs located at 111.00 on Monday. Upside target today is the weekly R1, the 200-hour SMA and the monthly R1 at 111.50.
In case this acceleration does not occur, traders should wait for a soon breakout from the senior channel and the 55-day SMA and a subsequent fall down to 110.00.
