USD/JPY: downside potential below 100
USD/JPY tried to rally on Tuesday, breaking above 100 before retracing to form a shooting star on the daily chart. At 99.84 at the time of writing, the bulls are pushing the market higher this morning but, as the pair continues to trade in a bearish channel and resistance at 100 remains strong, we expect to see downside movement.
Near-term support sits at 98.5. A break below that level would confirm the bearish outlook and open the door for the 97.00 level and ultimately the key support area at 95.00. In the alternative scenario, we would have to see a consistent break above 100.65 for the pair to continue its grind higher.
Published: 24 July 2013
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