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Forex pairs in this Article » USD/JPY (Chicago) - USD/JPY opened the week strong with a runaway gap setting the pace against a weaker yen ahead of Japanese data later at night.

USD/JPY Technical Levels

Technically speaking, the pair ends sideways movement at runaway gap indicating heavy buying. Primary, secondary, and short-term trends point down and the pair is offered at 97.70 oscillating between the supports aligned at 97.55 (October 18th lows), 97.16 (October 23rd lows) ahead of 96.89 (October 25th lows) and the resistances set at 97.74 (October 18th lows), 98 (October 15th lows), 98.20 (October 22nd highs).
Price action reveals strong buying starting the week in Asia with the pair advancing almost 80 pips at the opening. It is reported high volatility was due to an announcement made by the governor of Japan to raise the 401 (k) plan contribution ceiling. Sean Lee, Founder at FXWW speculated that it "Looks like the failure to close below the 100-dma on Friday has encouraged a bout of bullishness but this is where the heavy sell orders were reported on Friday, near 97.80."
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