USD/JPY is struggling to rise
USD/JPY bulls keep struggling at the lower end of the Ichimoku Cloud around 98.00. The baseline of the Cloud at 98.75 is also providing resistance for the pair as well as the 55-day MA around 99.10 and, of course, the 100.00 handle. The pair is now trying to hold above resistance line from May highs. Support lies at 97.40, 97.00 and 96.00.
Analysts at Bank of America Merrill Lynch expect USD/JPY to top around 98.76/85 or may be in the 99.95/100 zone before sliding to 93.65 and 90.91. UBS says that USD/JPY could reclaim 100.00 soon and then move toward their target of 110 yen.
There are USD-positive developments (2-year yield spread between the US and Japan almost reached 2-year high), but we need to see the pair rise above 99.00/100.00 to be more confident in the greenback’s ability to retest May highs and resume uptrend.
Chart. Daily USD/JPY