USD/JPY: daily update
USD/JPY is consolidating above 98.00 after it gained more than 100 pips yesterday. Nikkei closed up by 1.32% at 14,050.16. There’s selling interest from Japanese exporters at 98.50 which is currently limiting the pair’s upside together with the 55-day MA and the thin daily Ichimoku Cloud (98.75). The pair clearly needs a sustainable break above these levels to establish a more sustainable uptrend. The next obstacles on the upside are at 99.70 and 100.00.
The trade for today may be small longs on the dips up to 98.60 for 98.75. Note that USD is overbought in the short-term. Good support lies at 96.75.
Chart. Daily USD/JPY