USD/JPY – Rebounds Sharply

• After declining by over 2.5% in the past week and after retesting sub 96.00 levels on Monday, USDJPY currency pair bounced sharply as data released on Monday showed Japanese GDP growth missing consensus estimates by expanding at an annualized pace of 2.6% from a 4.1% growth in the previous quarter. USDJPY currency pair, in doing so, managed to hold 95.90 – 95.80 zone support consisting of 200-day SMA and 23.6% Fibonacci Retracement Level of 103.73 – 93.78 downfall.
• On Tuesday, JPY continued losing ground against USD and moved back above 98.00 after a newspaper report, which said that the Japanese government might propose cutting corporate taxes.
• On the upside, the pair is likely to face immediate resistance near 98.50 – 98.70 zone representing 50% retracement level, followed by resistance near 100-day SMA region, currently near 99.20 level.
• However, 99.70 – 99.90 zone on the upside representing 61.8% retracement level and a descending trend-line extending from 2013 high and joining through highs formed in the month of July, might continue to prove as a major resistance for the currency pair.
• On the downside, 97.20 – 97.40 zone  may now provide immediate support for the currency pair and should the pair fail to hold the immediate support, it is likely to give up some of the Monday’s gains and move towards 96.70 horizontal support zone.

Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/