USD/JPY : Further upside in the near term towards 97.85.
With the USD Dollar posting its biggest drop in nearly three weeks on Monday, the greenback was in corrective mode in overnight trade, with the USD/JPY mounting a recovery. At 97.08 at the time of writing, the bulls are in full control of the market this morning and seem willing to push it higher. We see further upside potential in the near term that could bring us as high as 97.85. However, it is worth noticing that we are in a clear bear trend since the beginning of September and we therefore expect such rallies to be seen as good selling opportunities by longer term traders. A test of key resistance at 97.85 is more likely to cause a pullback, rather than a confirmation of a long term trend change.
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