USD/JPY: technical prospects
USD/JPY is probing levels above 98.00. Nikkei stock index rose by 2.96% to 13,213.55.
There’s still selling interest at 98.30/50/70 and buying in the 97.40/00 area. There’s now support at 97.80/90. A harami candle on H1 means that these levels may be soon tested. It’s very important to see whether US dollar manages to close above 98.15 (lower border of the daily Ichimoku Cloud).
Analysts at Commerzbank think that the greenback could rise to 100.00 where the pair will met strong resistance and struggle to get higher. Only a close above this level will bring USD/JPY to 103.73 (May high).
We also favor buying on the dips as long as the pair stays above yesterday’s low of 97.20, though a break above 98.70 is needed for dollar to retest 99.05 (55-day MA), 99.30 and 100.00.
Chart. H4 USD/JPY