The US Dollar continues to strengthen against its Japanese counterpart for the third consecutive session. The pair managed to bounce off the weekly R1 and the 61.80% Fibonacci retracement and trade close to the weekly R2 and the monthly R1 on Wednesday morning.
Technical indicators remain bullish, suggesting that the 110.75 area should be breached in this session. The following levels of significance are either the upper channel line or the weekly R3 at 111.00 and 111.22, respectively.
Meanwhile, the pair’s trading range in the four-day ascending channel has diminished. This shows that the strong bullish sentiment which has prevailed since the beginning of this week is starting to ease. This might be an early indication of a reversal. The Greenback should find strong support near the 110.00 territory.
