USD/JPY continues recovery to approach key 100.00 resistance

<p>USD/JPY (daily chart) has continued its sharp recovery of the past two weeks to approach major resistance around the key 100.00 figure on Monday. This […]</p>

USD/JPY (daily chart) has continued its sharp recovery of the past two weeks to approach major resistance around the key 100.00 figure on Monday. This partial recovery follows a substantial bearish correction that occurred from late May to mid-June, which brought the price down from its multi-year high of 103.72 in May to 93.77 in June. The price turned back up at the June low, which also coincided with the 38.2% Fibonacci retracement level of the entire bullish trend.

While the recent bearish correction appeared deep, it was a rather shallow one within the context of the larger trend. Now bumping up against key 100.00 resistance once again, the strong uptrend continues to assert itself, placing the pair at a critical juncture. A significant breakout above 100.00 would confirm the bullish recovery, with upside price objectives around 103.00 and then a retest of the noted May 103.72 high. A major resistance target further to the upside is the 105.00 level.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.