USD/JPY: daily update
As we’ve expected yesterday, USD/JPY rose above 100.00 to turn down again near 100.50, close to resistance line from May highs. Today the pair has been trading between the 100-period MA (H4 chart) in the 100.00 area and the 55- period MA at 99.80.
We expect the pair to remain in the consolidative mood fluctuating around 99.95. Support is at 99.80/70 and 99.40 (support line from July lows). We think that the latter will limit the declines in the short term as the series of higher lows shows that the bulls are unwilling to give in. Below that watch 99.14 (July 23 low) and 98.75 (top of the daily Ichimoku Cloud). On the upside resistance lies at 100.18, 100.45, 100.60, 100.80 and 101.00. The rise avove 101.40 is needed for US currency to test may highs at 103.70.
Chart. H4 USD/JPY