USDJPY – Daily Forecast 23 Aug 2013


The USDJPY maintained a  bullish momentum yesterday, bottomed at the 97.58 levels, topped at the 98.80 levels, now focus will be on the 98.80 levels.

The USDJPY will have to hold above the  98.80 levels on a daily closing basis to push the market  for further upside gains, If seen It will target the 99.95 levels where a breach will turn focus on the 100.86/101.52 levels, at this point I’d expect a strong resistance from the 100.86/101.52 levels to contain rise from 95.80 levels and bring reversal to the downside, however; a clear break above 100.86/101.52 is an early warning that falls from 103.73 levels probably is over, If seen, this scenario should pave the way toward the 103.73 levels.

Alternatively, a failure to hold above the 98.80 levels could mean a return to the 97.58 levels, sustained break below 97.58 will confirm short term topping , If seen, this scenario would suggest a third leg of 103.73, 101.52 consolidations,then focus will be on the 95.80 levels, a break would open the 93.78 levels, furthermore will aim the 90.80 levels.

In all, as long as 97.58 holds on a daily closing basis, the pair will remain biased to the upside in short term with risk towards the 100.00 levels, losing the 97.58 will flip bias back to the downside towards 95.80 levels.