Forex: USD/JPY; 61.8% Fibo at 81.45 next level to overcome
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USD/JPY
FXstreet.com (San Francisco) - USDJPY shot up to a fresh 7-month high of 81.46 Thursday in the midst of another round of JPY weakness after Japan's opposition leader suggested a preference for further easing from the BoJ. The yen is now quoted at 81.10, set to record a 2.1% weekly loss at these levels.
"Pullbacks so far have been limited with price holding the 81.00 level, while hourly indicators corrected most of their overbought state, which suggest there are not much sellers around and dips will likely be understood as buying opportunities," comments Valeria Bednarik, Chief Analyst at FXstreet.com. "Bigger time frames hold a strong upward momentum that favor a continuation, now targeting 82.50 price zone."
Price is now trading just off a 61.8% Fibonacci retracement level at 81.45 (84.15/77.12 decline), now limiting the upside. If USDJPY extends, Ms. Bednarik identifies resistance levels at 81.70 and 82.00, while dips may find support at 81.10, 80.80 and 80.35.
"Pullbacks so far have been limited with price holding the 81.00 level, while hourly indicators corrected most of their overbought state, which suggest there are not much sellers around and dips will likely be understood as buying opportunities," comments Valeria Bednarik, Chief Analyst at FXstreet.com. "Bigger time frames hold a strong upward momentum that favor a continuation, now targeting 82.50 price zone."
Price is now trading just off a 61.8% Fibonacci retracement level at 81.45 (84.15/77.12 decline), now limiting the upside. If USDJPY extends, Ms. Bednarik identifies resistance levels at 81.70 and 82.00, while dips may find support at 81.10, 80.80 and 80.35.
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