USD/JPY gained 83 pips on Tuesday after accelerating from the senior channel near 111.00. The Greenback strengthened against all major currencies mid-session, thus surging almost 0.40% against the Yen in one hour.
By Wednesday morning, the rate had allayed considerably, but it was still able to reach the weekly R2 at 112.08. This solid appreciation has sent the pair in the overbought territory, while technical indicators are converging. Thus, the US Dollar is likely to aim for the 55-, 100– and 200-hour SMAs near 11.20. Given that this cluster is also reinforced by several other lines, this level should remain intact.
Conversely, upside target is set near the 113.00 mark. Despite trading sideways for several hours, bulls could still add some gains during the following hours.
