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Forex pairs in this Article » USD/JPY (Edinburgh) -The Japanese yen continues to appreciate against its American counterpart on Tuesday, dragging the USD/JPY to lows in sub 98.00 levels.

USD/JPY extends the decline

The pair is eroding yesterday’s gains below the key support at 98.00, resuming at the same time the recent bearish move from last week’s peaks beyond the triple-digit figure. According to G.Moore and S.Osborne, Strategists at TD Securities, “We think the long-term USD rally stalled (right at the top of the monthly cloud chart resistance) in May and the USD risks turning lower in a meaningful way in the next few weeks. Weakness below the base of the wedge formation implies the potential for the repeat of the 103-93 drop seen in May/June from this week’s breakdown point (99.80)”.

USD/JPY support/resistance levels

As of writing, the pair is retreating 0.15% at 97.82 and a breakdown of 97.64 (low Jul.29) would aim for 97.49 (cloud base) and finally 9729 (weekly Kijun Sen). On the upside, resistance levels line up at 98.47 (high Jul.30) ahead of 98.74 (cloud top) and then 99.25 (Kijun Sen).
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