USD/JPY approached resistance
USD/JPY rose to 97.80 approaching the downtrend line from September highs. The pair was supported by the hopes that US debt limit will be raised in time, as well as solid Japanese core machinery orders data (+5.4%). Nikkei rose by more than 1%.
The pair has entered the Ichimoku Cloud on H4. Still the near-term conditions look overbought and there’s much of the resistance ahead. Resistance is at 97.87/93 (short-term resistance line), 98.05, 98.25 and 98.65. Support is at 97.60, 97.20 and 96.60. Commerzbank points out that USD/JPY has to overcome 97.90/98.10 for the move up to “look more like a bullish trend than a corrective bouncing.”
Rochford Capital: “As soon as you start to see signs of an agreement being reached on the debt ceiling, USD/JPY will fly back up to 99.00 pretty quickly.”
Chart. H4 USD/JPY