Upside risks prevailed in the market on Monday, thus allowing the US Dollar to advance by 1.0% against the Yen. The pair managed to surpass the 55-hour SMA along the way, but was hindered by the weekly PP and the 100-hour moving average circa 106.20—the level where it was located on Tuesday morning.
It seems that this strong daily surge has exhausted the strength of bears. This could allow for the prevalence of the bearish sentiment in this session. This scenario is likewise confirmed by strongly bearish technical indicators.
The nearest resistance is set by the 55-hour SMA circa 105.80, while a more probable downside target could be the 2017 low of 105.35. Conversely, a move above the 107.00 is unlikely today.
