USD/JPY: daily update
USD/JPY lost yesterday about 140 pips. The pair slid below the 50% and 61.8% Fibo retracement of the advance from June to July at 97.65 and 96.75 respectively. Today the greenback tested levels just below 97.00, but then renewed low at 96.09 and returned to the opening level in the 96.30 area.
The greenback looks vulnerable for a decline to 95.60 (76.4% Fibo) and 95.00/94.80 (support line connecting April and June lows) and even 93.78/55 (June low, 38.1% Fibo of the advance from September 2012 to may 2013). In the upside, resistance is at 97.65, 98.00 and 98.50/60. Support is around 96.20/00.
Note that USD is oversold in the near term, so we don’t expect sharp declines below 96.00. In our view, it makes sense to sell USD on its attempts to go higher, below 97.60.
Chart. Daily USD/JPY