USD/JPY: technical prospects
USD/JPY found support at 95.00 on Friday, formed a hammer and managed to close above the daily Ichimoku Cloud (97.35).
One can’t rule out a stronger rebound in USD/JPY. However, there are many resistance levels ahead: 98.95 (55-day MA), 99.35/40 (50% Fibo of the decline from May highs to Friday’s low, the trend line breached last week), 100.00 (psychological level, bottom the Cloud on H4) and 100.40 (61.8% Fibo). There may be selling opportunities into this resistance. Support lies at 97.40, 97.00 and 96.50.
Commerzbank keeps the longer-term USD/JPY forecast positive targeting 105.60 as long as the pair is trading above 96.50.
Chart. H4 USD/JPY