USD/JPY: technical prospects
USD/JPY slid from the levels above 101.00 and is testing levels below 100.00. For now the day’s low is at 99.77.
Yesterday the pair closed above the daily Ichimoku Cloud. The bearish Cloud itself has narrowed.
At the same time, note that correction from June minimums has retraced 76.4% of the decline from May to June. In addition, there’s divergence on H4 chart (MACD, RSI). A drop below 100.00 may provoke a slide to 99.30 (55-day MA), 98.70 (50% Fibo; on H4 chart the 100-period MA tries to rise above the 200-period one in this area) and 98.15 (bottom of the Cloud).
Resistance lies at 100.85 and 101.40/50.
Chart. Daily USD/JPY