USDJPY Analysis: Points to possible decline
|Even though the Greenback was tended southwards on Thursday, it remained stranded between the monthly S2 and the 200-, 55– and 100-hour SMAs for the whole session. The pair was testing the 100-hour SMA and the bottom boundary of a short-term channel circa 110.80 at the time of this analysis. From theoretical point of view, the US Dollar should pick up speed and approach the long-term moving average. This assumption, however, is not supported by technical indicators that suggest a strong decline. This scenario is likely to occur if the 110.80 area is breached. A subsequent fall, however, should not exceed the 110.20 mark where the monthly S2 and the weekly S1 are located. Meanwhile, the upside target for today is the 11.50 mark.
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