USD/JPY: cloudy picture
USD/JPY has found support at the lower edge of the daily Ichimoku Cloud. Today US dollar edged up after losing more than 260 pips yesterday.
The pair which was driven by betting on Japanese Abe’s policy may have lost this driver. Market players are searching for the new driving force and for now they are adjusting their positions under the current volatile conditions.
Resistance: 97.40 (the Cloud’s top), 97.80 (top of the gap), 98.30, 99.00 (55-day MA), 99.35 (Ichimoku base line) and 100.00.
Support: 97.77 (April 16 low), 95.40 (Cloud’s bottom), 95.00.
We are looking forward to volatile trading. Our recommendation to sell on rallies to the breached resistance line was a success. We still think that the pair’s upside is limited. Yet, the fact that the pair didn’t renew minimums makes the picture cloudier than yesterday.
Chart. Daily USD/JPY