The Greenback gained strength against the Yen for the second consecutive session yesterday. The pair’s surge was stopped by the 200-day SMA, the weekly R1 and the 61.80% Fibonacci retracement at 110.20.
After failing to breach the strong resistance of these two levels and the upper boundary of a one-week channel, the rate breached a more junior pattern early today, thus erasing all Wednesday gains along the way.
Despite this being a bearish signal, the US Dollar is likely to hinder near the 100-period (4H) SMA located at 109.85. This line and the 200-day SMA at 110.20 could pressure the rate from both sides, thus limiting large gains today.
In case the current support surrenders, the subsequent decline should not exceed 109.40, while the upper daily limit is the monthly R1 at 110.80.
