Monday’s trading session has not introduced any changes to USD/JPY’s positioning which was mainly due to the 55–hour and 200-period (4H) SMAs surrounding the rate. As a result, the expected test of the upper boundary of the junior channel did not occur.
It is likely that the 200-period SMA proves to be stronger than its 55-hour counterpart, thus putting more weighting on the bullish scenario. The 55– and 100-hour SMAs and the weekly PP must be surpassed for the Greenback to fully accelerate towards the monthly PP at 111.80.
In case the 200-period SMA is stronger, the pair is likely to aim for the psychological 111.00 level and later for the weekly S1 at 110.65.
