USD/JPY at lows since April
USD/JPY has so far made a spectacular slide today plunging by about 200 pips. After yesterday’s uncertainly (long-legged “doji” on the daily chart) the pair slid below the lower border of the daily Ichimoku Cloud in the 95.50 area and then below 95.00 handle to hit 93.78, the minimal level since April 4 when the Bank of Japan has announced extraordinary monetary stimulus.
The setting on the daily chart looks bearish. The possibility of the decline to 92.70/60 (April lows) and even to 90.40 (50% retracement of the pair’s advance from September to May) has increased. The nearest support lies at 93.55 (38.2% Fibo).
Resistance is at 95.40. Retracement to this level seems likely as USD is oversold in the short term and there’s divergence on H4 MACD and RSI. The next resistance levels are at 95.80 and 96.00.
Chart. Daily USD/JPY