The US Dollar continues to weaken against the Yen for the fourth consecutive session. Some upside potential was apparent mid-Friday when bulls responded positively to US fundamentals.
This appreciation, however, was stopped by the 55-hour SMA near 106.20 which continued to guide the pair during the following hours. As a result, the Greenback breached a two-week channel up and was located near a trend-line early today.
Technical indicators are bearish. This means that the 2017/2018 low of 105.35 could occur soon. A further fall is unlikely, given that this area is likewise supported by the weekly S1.
In terms of upside potential, the ultimate high in this session should be the 100– and 200-hour SMAs and the weekly PP if no positive developments add some additional strength to bulls.
