The US Dollar was trading in the same range against the Yen during the most of the session on Thursday. The pair failed to move above the 106.40 mark, as the northern barrier was limited by the 55-, 100– and 200-hour SMAs and the weekly PP. As a result, the pair was pushed back to 106.00 during the Asian session.
Given that this resistance is likewise reinforced by SMAs on the four-hour chart, it is expected that the Greenback fails to overcome this area today. The most likely downside target should be the 2017 low of 105.35. Meanwhile, the pair might still go for a re-test of the 106.40 area, thus limiting the expected fall to 105.60.
Some volatility might be introduced in response to US Building Permits released at 1230GMT; however, the projected trading range is unlikely to be breached.
