The US Dollar continues to trade in a descending channel against the Japanese Yen for the third consecutive session. Despite some fluctuations yesterday, the pair had returned at its Thursday opening level by this morning.
It is likely that the pair tries to move above the 55-hour SMA at 109.80 today. This area, however, is expected to hinder or even halt the pair, as it is likewise reinforced by the 100-period SMA on the 4H chart. In case this level is surpassed, the following resistance is formed by the 100– and 200-hour SMAs and the weekly PP at 110.35.
The bearish scenario should likewise be considered. In case no fundamental events introduce volatility in the market, the Greenback should remain trading along the 55-hour SMA. This line would push the pair lower but without breaching the psychological 108.00 level.
