USD/JPY: comments from Commerzbank
USD/JPY closed yesterday below the psychological mark of 100.00. Yen strengthened due to the increase in risk aversion and heightened volatility in the local equity and bond markets. At the moment the greenback is trying to regain feet above this level.
Commerzbank expects the pair to slide to 98.50 (uptrend support line from November) and thinks that this level will hold initial pressure of the bears. If USD/JPY breaches this support, it will be vulnerable for a slide to 97.45 and possibly 93.60 (23.6% and 38.2% Fibo of advance since September). Serious divergence on weekly RSI means that we shouldn’t disregard the risk of such outcome.
In order to return to the recent high at 103.74, the bulls will have to overcome resistance at 101.70.
Chart. H4 USD/JPY