USD/JPY remained in between the 55– and 200-hour SMAs on Monday. During the first part of the day, the US Dollar tried to surpass the former and thus re-test a March high at 107.50.
Lacking the necessary upside momentum, bulls gave up their positions and allowed for a fall down to the long-term moving average, the weekly PP and the 23.60% Fibonacci retracement. The pair gained strong upside momentum early this morning, as comments by the Chinese President diminished considerably demand for the Yen as a save-haven currency.
A surge could be a possibility today, especially if the 55– and 100-hour SMAs have been surpassed. The nearest point of resistance is the monthly R1 a 107.50. The weekly R1 is likewise located nearby. Conversely, a decline should not exceed the 106.70 level.
