USD/JPY: technical picture
After 4 days of decline USD/JPY formed yesterday a bullish candle with a long lower shadow (daily chart).
Chart. Daily USD/JPY
Today the market looks indecisive. For now the daily candle resembles a spinning top. Its center is located at the key level of 96.75 (61.8% Fibo retracement of the advance from June to July). On H1 we see a potential inverted-head-and-shoulder-like formation. Yet, only above 97.00 the bulls will be able to push USD to the levels around 98.00. Below this point we’ll see more sideways trading in the 96.75/96.20 area. In this case the pair will remain quite vulnerable for a slide to 95.80 (yesterday’s low) and 95.60 (76.4% Fibo).
Chart. H4 USD/JPY