17, August 2016

USD/JPY (a 4-hour chart)

16_aug_USDJPY

Today during the Asian session, the Japanese Yen continued to strengthen due to the US dollar weakening. USD / JPY pair is trading near an important strategic level of JPY100. As a result of downward movement the markets now below JPY100.77 support level. The probability to go lower seems to be valid, for the weakness of the US dollar promotes it. However, we believe that the pair is kind oversold and a psychological level of JPY99.90-JPY100 will continue to restrain the downward movement. Before going lower we shall see at least one more pullback upwards. From a technical point of view, at the American session, the pair turned to correction and rolled back into the area JPY100.42 JPY100.77 where we can expect the resumption of sales. However, we are cautious about quick passage JPY100-99.90 level.