The global weakening of the US Dollar caused a 0.90% plunge for the USD/JPY exchange rate on Friday. This bearish sentiment did not allay this morning, thus adding 62 pips to the full decline.
At the time of this analysis, the rate was lingering near the weekly S1 and the 200-period (4H) SMA at 110.85. The bottom boundary of a four-month channel is likewise located near this area. The given plunge has sent technical indicators in the strongly oversold territory, thus giving bulls the opportunity to regain some of their lost positions.
If no fundamentals pressure the rate, it is unlikely that the US Dollar falls even lower. The nearest resistance is the 100-period SMA and the monthly R1 at 111.50, while the ultimate goal for this session is the 112.35 area.
