USD/JPY is appoacing resistance
USD/JPY is trying to return to the daily Ichimoku Cloud. Yesterday the pair tested 102.55, but then closed just below Cloud’s bottom at 102.28. Today the greenback’s attacking 102.80.
Analysts at Nomura argue that the pair’s rally through 101.39/67 pivots has confirmed a wave-b low and now prices are rallying towards a target zone between 103.15 and 103.65 in the wave c. “The first major hurdle to a move towards the mid 103’s is the key pivot level at 102.86,” says the bank. Today there may be some correction before the next move up starts. Nomura expects support to materialize at 102.29/10.
SEB Bank expects USD/JPY to stay capped by the 55-day MA at 103.20. In their view, an hourly Elliott wave study sets 103.14 as a possible target for the current upside correction and accordingly we expect to see sellers reentering in the 102.82/103.14 area. Commerzbank also emphasizes resistance at 103.20.
Chart. Daily USD/JPY