A test of the weekly R1 and the monthly R1 at 110.75 mid-Wednesday, the USD/JPY began a new wave down. This bearish momentum has sent the pair as low as the 100– and 200-hour SMAs this morning.
It is likely that the pair still edges lower during the following hours prior to reversing somewhere near the 109.70 area. The 200– and 100-period (4H) SMAs and a channel line are also located nearby. It seems that yesterday’s fall was only a slight correction against the general up-trend.
Thus, it is expected that the prevailing three-week ascending channel continues to be respected. The daily high today should be the aforementioned 110,75 territory, while a decline should not exceed the monthly PP at 109.45.
