USD/JPY: levels to watch
Though no one knew what Ben Bernanke was going to say, USD/JPY has so far has been moving in accord with the scenario which we outlined yesterday. After retracing 76.4% of the decline from May to June US dollar has travelled down through the daily Ichimoku Cloud. The greenback almost hit the Cloud’s lower border at 98.15 (today’s minimum lies at 98.21) before returning to the area of the 55-MA at 99.33.
The level of 98.15 remains a key one on the downside. Ahead of this point there’s an important support at 98.90/70. The loss of 98.15 will turn the focus to 97.75, 97.50 and 96.10. On the upside the most important level to watch is the psychological mark of 100.00. The bulls are also struggling in the 99.50 zone. Below this handle the bulls will keep feeling very uncomfortable. Further obstacles lie at 100.55 (top of the Cloud), 100.85 and 101.40/50.
Chart. Daily USD/JPY