USD/JPY pullback bounces near major support
James Chen October 17, 2014 8:00 PM
<p>USD/JPY (daily chart shown below) pulled back slightly below its major support target around the 105.40 price area, the last major high hit in the […]</p>
USD/JPY (daily chart shown below) pulled back slightly below its major support target around the 105.40 price area, the last major high hit in the beginning of 2014, before rebounding.
The pullback has brought USD/JPY swiftly down from its new six-year high just above the 110.00 handle that was hit at the beginning of the month.
This two-week plunge has retraced around 50% of the currency pair’s recent rally from the mid-July low around 101.00 up to the noted October high above 110.00.
Mid-week trading prompted USD/JPY to spike down to a low of 105.18 before rebounding and recovering a small part of its recent losses.
Further upside momentum on the current rebound could push the currency pair up to target the 108.00 resistance level once again.
To the downside, a breakdown below 105.00 could prompt a further bearish correction towards the major support area around the 103.70 level.