The US Dollar was trading sideways against the Yen for the second consecutive session on Tuesday. Its attempt to move below the 109.50 mark was restricted by the combined support of the 55-hour SMA and the monthly PP. As a result, the pair was once again pushed to the upside.
The rate had reached the psychological 110.00 level by Wednesday morning. Technical indicators flash bullish signals for this session. This likelihood of this scenario is also strengthened by the fact that the Greenback surpassed the 100-period (4H) SMA early in the morning which could provide additional support. However, the 200-day SMA and the weekly R1 are located at 110.20, so gains could be limited today.
In terms of downside potential, the pair might fall until the 100– and 200-hour SMAs and the weekly PP at 109.20.
