USD/JPY appears to be stabilizing/bottoming near the lows of the range and the price action is beginning to look constructive, notes CitiFX Technicals.
“USDJPY effectively held the 76.4% retracement against the May low which came in at 101.27 (low yesterday was 101.24). We also posted a “doji” pattern reflecting indecision. An up day today would start to reflect a short term reversal (bullish).” Citi adds.
“Daily momentum is very stretched, though has not yet crossed over. Short term gains from here would lead to a crossover. Looking ahead the key short term level is 102.80 though an earlier sign of further gains would come on breach of 101.98 (short term downward sloping trendline),” Citi argues.
“Beyond that, the more medium term level is still 104.13, which marks the double bottom neckline. A close above there (preferably a weekly close) would open the way for a test of 107+,” Citi projects.
