USD/JPY: technical picture
USD/JPY breached support at 97.65 and, as we expected, weakened to one and a half month low at 96.75 (61.8% retracement of the advance from June to July). A close below this point will be quite negative for the greenback: USD is very vulnerable for a test of 95.60 (76.4% Fibo), 95.00/94.80 (support line connecting April and June lows).
At the same time, note that American currency is oversold in the short term, so we don’t expect a sharp fall below 96.50. There’s also some support around 96.20. On the upside resistance lies at 97.65, 98.00, 98.50/60.
Chart. Daily USD/JPY