USD/JPY – Technical Outlook

• Last week, USDJPY currency pair decisively strengthened above a strong resistance near 98.70 – 98.90 zone, consisting of 50% Fibonacci Retracement Level of 103.73 – 93.78 downfall and an descending trend-line extending from 2013 high and joining through highs formed in the month of July.
• Last week, on Thursday, the pair managed to close above the 100 mark for the first time since July 24. However, on Friday, disappointing US jobs report pulled the pair to retest the 98.70 – 98.90 resistance turned support.
• This week on Tuesday, USDJPY resumed its upward trajectory, after a minor pull-back on Monday, and is currently holding above the 100.00, trading at 100.31.
• The pair seems to have decisively strengthened above 100.00 strong resistance zone, indicating further near-term up-ward momentum for the currency pair. USDJPY currency pair now seems to test July 2013 highs (101.50) and then might continue its up-ward trajectory even beyond 2013 highs (103.70) to test levels beyond 105.00 in the near-term with intermediate resistance near 102.30 – 102.40 zone.
• On the downside, 99.90 – 98.80 now seems to provide immediate support for the currency pair.
• However, 98.90 – 98.70 zone, consisting of 100-day SMA and 50% retracement level now seems to act as a major downside support for the currency pair. This is closely followed by support near 98.30 – 98.20 zone.
• Should the pair decisively break below 98.90 – 98.70 major support zone, the pair is likely to give up its recent gains and move back towards 97.50 – 97.30 support zone, coinciding with 38.2% retracement level and 200-day SMA respectively.

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