USD/JPY Going Up

The US Dollar continues to gain value against its Japanese counterpart for the third consecutive session. The pair breached the 55– and 100-hour moving averages and the upper boundary of a two-week descending channel during the previous 24 hours, thus adding to the overall bullish sentiment.

Given that the pair is moving neatly towards the senior channel, the 108.00 area could be reached later in the week. However, the current steepness is unlikely to hold, as technical indicators point to a possible bearish correction.

This fall is expected to be brief, as the southern side is supported by the 100– and 55-hour SMAs circa 106.40. Meanwhile, bullish gains should be capped near the 107.50 mark where the long-term moving average is located.

Chart: USD/JPY H4