As was anticipated, the US Dollar was able to outperform the Japanese Yen on Monday. Further gains could be limited by the 111.80 level, namely the monthly PP, which could result in the recently acquired up-trend to be broken. A successful surge above the mentioned pivot point is expected to prolong the given pair’s bullish momentum and put the monthly R1 at 113.35 into perspective. Technical studies, however, are unable to confirm the possibility of such an outcome, thus, we should not rule out the bearish scenario—a break of the up-trend. Even though the pair is supported by a number of significant levels, downside risks persist amid political and fundamental uncertainties. Ultimately, the pair could slide back to 109.22 if the up-trend gets pierced today.
