USD/JPY returns near 55-hour SMA

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 49% 45% 8.16%
Shorts 51% 55% -7.84%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Buy
RSI (14) Neutral Buy Neutral
Stochastic (5; 3; 3) Sell Neutral Buy
Alligator (13; 8; 5) Sell Sell Buy
SAR (0.02; 0.2) Buy Sell Buy
Aggregate

The bearish pressure continued to prevail on Monday, thus sending USD/JPY towards the combined support of the monthly S2 and the weekly S1 circa 110.30.  

Due to this cluster, the Greenback failed to reach the bottom boundary of a four-month channel circa 110.00. The test of this support was followed by a slight period of recovery until the rate reached the 55-hour SMA. 

Technical indicators suggest that the rate is likely to fail today, especially if its northern barrier is likewise reinforced by the 100-hour moving average. Even if the rate breaches the 110.30 area, its subsequent fall should not exceed the aforementioned channel. The pair's movement would eventually lead to the breakout of a short-term descending channel and a possible surge.

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