The USDJPY rebounded as suggested last week from the 96.00 levels. But this pullback was limited by the key resistance 98.57. However; looks like the pair is trapped inside a triangle. At the moment the pair is neutral. Support comes at the 95.80 levels. Losing this level on a daily closing basis would have large bearish implication and is likely to extend weakness towards 93.78 levels. A breach will turn the focus on the 90.85 levels.
On the upside. The pair will have to overcome the 98.57 levels to resume rise from 95.80 levels. Above 98.57 will look for the 100.00 levels. Above this level will turn the focus on the 101.52. Furthermore will aim the 103.73 levels.
In the medium/long term view. Fall from 103.73 levels still treated as a consolidation pattern. Main support on weekly is at 93.78 ahead of 92.55. The main resistance is at 101.52 ahead of 103.73. With both resistance levels intact. Fall from 103.73 could extend towards the 93.78/92.55 levels. A halt is likely around those levels. But losing them on a weekly closing basis will bring a free fall towards the 87.00 levels.
Support and Resistance levels on daily : 90.85, 92.55 , 93.78 , 95.80, 96.97 , 98.57 , 100.00 , 101.52. 103.73
Trend Strength (daily chart):
Bullish: above 103.73
Neutral: below 103.73
Bearish: below 95.80
Live Chart Of USDJPY
Key data/events which may influence USDJPY next week:
- US Existing Home Sales, Wednesday 2:00 pm
- US FOMC Meeting Minutes, Wednesday 6:00 pm
- US Unemployment Claims, Thursday 12:30 pm
- US New Home Sales, Friday 2:00 pm
All times are GMT
USDJPY Daily Chart