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Will USD/JPY hold 97.30 – 97.10 support.?
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After slipping below 100-day SMA support on Friday, USDJPY weakened further on Monday and settled below 98.00 (97.90) for the first time after June 27. On
- After slipping below 100-day SMA support on Friday, USDJPY weakened further on Monday and settled below 98.00 (97.90) for the first time after June 27.
- On Tuesday, JPY initially weakened against USD after disappointing Japanese Industrial Production. USDJPY, however, gave up its initial gains and is currently trading below the 98.00 mark.
- USDJPY is heading towards a very important support near 97.30 – 97.10 zone representing 38.2% and 50% Fibonacci Retracement Levels of 103.73 – 93.78 downfall and 93.78 – 101.53 recent up-move.
- Should the pair decisively break below 97.30 – 97.10 support zone, the pair could possibly witness a fresh round of near-term weakness towards sub 93.00 levels with intermediate support near 96.00 – 95.80 zone.
- On the upside, 98.70 region is likely to provide immediate resistance for the currency pair.
- Should the pair manage to hold 97.30 – 97.10 important support and decisively strengthen above 98.70 immediate resistance zone, the pair seems to extend the up-move initially towards 100-day SMA, currently near 99.30 zone, and further towards 99.90 resistance marked by Fibonacci Cluster resistance and a descending trend-line extending from 2013 high and joining through highs formed in the month of July.
- Furthermore, a decisive strength above 99.90 resistance or 100 round figure mark would indicate a strong momentum for the currency pair and the pair could retest 101.50 level (July high).
- Thus, 97.30 – 97.10 zone seems to act as an important pivot for the near-term direction of the currency pair.
About the Author
Haresh Menghaniauthor
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