USD/JPY: technical picture update
USD/JPY broke yesterday below support at 98.80 (55-day MA, trend line support) and slid by more than 200 pips. US dollar broadly weakened on Thursday and today Japanese Finance Minister Taro Aso said he wouldn’t intervene to weaken the currency.
There are more bearish developments to mention. The greenback dropped below 97.40 (23.6% Fibo of the advance from September, top of the daily Ichimoku Cloud) – this level is now acting as resistance for the prices. The daily conversion line (red) went below the base line (blue) – the thing which we haven’t seen for many months. On the monthly chart USD/JPY returned back into the bearish Cloud after failing to settle above its upper border at 100.18.
In the short-term the pair is oversold. Support for the pair lies at 95.40 (bottom the daily Cloud). The loss of this level might bring USD/JPY to 94.45 (February high) and 93.60 (38.2% Fibo). Trading will be volatile ahead of US NFP report (12:30 GMT).
Chart. Daily USD/JPY