As was anticipated, the US Dollar edged lower against the Japanese Yen yesterday, but managed to remain relatively high above the key support—the monthly S1 at 109.22. Despite the USD/JPY pair showing signs of strength early today, technical studies keep giving strong bearish signals, suggesting the key support could be reached today. In case the Greenback strengthens versus the Yen too much, the six-week down-trend is likely to reverse polarity and reimburse USD-selling. Furthermore, yesterday’s breach from the broadening rising wedge pattern is also likely to lead to the pair sliding down towards the pattern’s origin point—the same 109.22 mark. The upcoming FOMC meeting on Wednesday still remains the key market mover this week.
