FXStreet (Bali) - As JP Morgan FX Strategists note, the medium term consolidation phase in USD/JPY continues to develop with the 100.80/60 support zone being critical.
"The medium term range bias continues to develop as the focus stays on critical support levels. While we view the broad consolidation phase below the January high with a corrective bias and part of an incomplete uptrend, we recognize the pair has struggled to sustain any extended rally over the past few months."
"Moreover, the recent retracements have formed a series of lower- highs since the April peak with each bounce developing on less momentum. In turn, there is a greater focus on the 100.80/60 medium term support zone. This area represents the May and February lows, as well as the 50% retracement of the rally from the October low."
"The key upside hurdles are well-defined starting with the 102.25/102.80 zone which includes the June and July highs, the downtrendline from the January peak and the daily cloud resistance. Upside breaks would go a long way towards defining a more sustained advance."
"Alternately, violations of the 100.60 area suggest a closer test of the 100/99.95 area is likely. This area includes the 61.8% retracement from the October low, before the critical 99.01/98.65 area. Note this area represents the November breakout area and should be a max if a continuation of the long term uptrend is in the cards."