Following a breach of the upper line of the junior channel, the US Dollar continued to appreciate against the Yen near the weekly R1. Further potential upwards was strengthened by solid data mid-session that resulted in a surge up to the 110.80 mark.
Subsequently, the rate resumed its up-trend until early morning when the lack of market volatility guided the Greenback sideways.
This change in sentiment together with worsening technical indicators demonstrate that the rate is likely to fall today, possibly seeking to retrace from the upper channel line circa 110.00. The 55– and 200-hour SMAs are located near this area.
