USD/JPY: technical prospects
USD/JPY closed yesterday right at 100.00 and slid to levels around 99.50 today.
The closest resistance lies at the baseline of the daily Ichimoku Cloud (100.37) and Tuesday’s high (100.46). Further resistance lies at 101.00 and 101.80. Support is at 98.70 and 97.40 (23.6% Fibo of advance from September and the top of the daily Cloud).
Note that as USD/JPY hit the psychological level at 100.00 on its way down, the chances that the pair will quickly return to the uptrend decreased, but the move down hasn’t accelerated. ANZ underlines that the milder are the pair’s attempts to rebound, the longer will be the consolidation phase.
On the downside the greenback may retrace down to 93.60 (38.2% Fibo). On the upside, the long-term targets lie at 105.50 and 110.00.
Chart. Daily USD/JPY