By CountingPips.com
The US dollar has been trading lower the past three days against the Japanese yen in forex trading after the USD/JPY bounced off the 200-day moving average. The dollar/yen pair has been rallying for most of February with a top culminating at the 83.96 exchange rate on February 16th following up-and-down January trading.
The pair tested (for the first time since June 2010) but failed to hold above the 200-day moving average (in black) and instead has bounced off and descended lower.
The pair currently trades just above the 50.0 Fibonacci retracement level (on the move down from 85.92 to 80.17) with a previous support/resistance line below near the 82.50 level. Further down the line the 38.2 Fibonacci level lies at 82.35 while upside barriers are presented near 83.50 and the 61.8 retracement level which closely coincides with the 200-day moving average.
