USD/JPY weighed down on pullback

<p>USD/JPY (daily chart) has continued to be weighed down after hitting a 10-week low of 100.75 earlier this week. That low was preceded by a […]</p>

USD/JPY (daily chart) has continued to be weighed down after hitting a 10-week low of 100.75 earlier this week. That low was preceded by a 4.4% decline from the currency pair’s five-year high of 105.43, which was established in the very beginning of this year. This decline occurs within what continues to be, for the time being, a longer-term bullish trend extending back to the September 2012 lows near 77.00.

 

In making the 4.4% pullback thus far, USD/JPY has come close to reaching down towards its major support level at the 100.00 psychological level, which is also where the 200-day moving average currently resides, as well as the 61.8% Fibonacci retracement of the last major bullish run.

With the non-farm payrolls report closely approaching on Friday, the pair should find a clearer directional path after its recent pullback. In the event of a downside extension of the pullback, major support continues to reside at the noted 100.00 level. Upside targets on a potential recovery and resumption of the underlying trend reside once again around 103.70 and then the noted 105.43 long-term high.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (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.