Watch for 97.00 Level For Near-Term Direction of USD/JPY

After almost touching 100.00 psychological figure on Aug. 2, USDJPY has been retreating after disappointing US jobs report and is headed towards a very important support near 97.30 – 97.10 zone.

The 97.30 – 97.10 zone represents 38.2% and 50% Fibonacci Retracement Levels of 103.73 – 93.78 downfall and 93.78 – 101.53 recent up-move and seems to act as an important pivot for the near-term direction of the currency pair.

Should the pair fail to hold 97.30 – 97.10 support area, the pair might continue weakening towards its intermediate support near 96.00 – 95.80 zone. Further, a decisive break below 97.30 – 97.10 support area is more likely to trigger a fresh round of weakness for the currency pair in the near-term and the pair could be vulnerable to test sub 93.00 levels.

On the upside, the pair is likely to face immediate resistance near 98.70 area representing 50% retracement level, followed by resistance near 100-day SMA region, currently at 99.30 level.

Moreover, the 99.90 – 100.00 zone, representing a descending trend-line resistance extending from 2013 high and joining through highs formed in the month of July, has now emerged as a major resistance on the upside for the currency pair.

A decisive strength above 99.90 – 100.00 resistance would indicate a strong momentum for the currency pair and the pair could retest July 2013 highs (101.50 level). Furthermore, the pair might continue its upward trajectory and could even break past 2013 highs (103.70 level) to test levels beyond 105.00 in the near-term with intermediate resistance near 102.30 – 102.40 zone.

Thus, 97.30 – 97.10 zone might prove to be an important pivot for the near-term direction of the currency pair.

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