USD/JPY: what to expect?
The USD/JPY currency pair recovered to 101.75 after having dipped to 100.80 yesterday. The 101.75 area remained resistive for now: this is the prior 2014 support line broken to the downside on May 15. The pair is currently trading around 101.50.
The pair remains in a bearish channel since the end of April and is now testing the upper border of it (around 101.80). We are not ruling out another dip to 100.75 or even lower as long as the 102.00 mark remains above us. Key support for the pair lies at 101.20, 101.00 and 100.75.
The market attention now switches to the US data on the calendar: these are the unemployment claims, the flash manufacturing PMI and the existing home sales. Positive developments in the US could become a catalyst for a rebound above the 101.75 level.
Chart. H4 USD/JPY