Following the hourly surge on Friday morning, the US Dollar lost its strong upside momentum against the Yen and continued to trade with moderate gains. Contrary to expectations, the monthly R1 did not provide enough resistance to hinder or halt the pair. Thus, the rate has approached a two-month high at 114.34, suggesting that this level could finally reverse the Greenback to the downside. Technical oscillators may likewise reach the overbought area in this session, adding some ground to the aforementioned scenario. Nevertheless, there is still some upside potential until the upper channel boundary circa 114.60. In case bears are to prevail, the 55– or 100-hour SMAs located at 113.60 and 113.42 on Monday morning may be considered the bottom limit today.
