USD/JPY: Downside potential below 100
The USD/JPY tried to rally on Tuesday breaking above 100 before re-tracing back 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 for 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.
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