City: USD/JPY to rise from 101.20/40
According to City Bank strategists, the 101.20/40 area will likely provide support for USD/JPY. They expect the pair to resume growth from these levels.
Analysts point that the pair is now supported by the top of the weekly Ichimoku (around 101.45). The Cloud is expected to limit the bearish correction of the pair. This viewpoint is confirmed by the monthly chart. The conversion line (Tenkan-sen) that has provided support for the past 6 months now comes in at 101.20.
"We would be concerned and need to re-assess if we were to see a weekly close below the top of the weekly cloud and a monthly close below the monthly conversion line," Citi projects.