By Russell Glaser
The technicals for the USD/JPY are beginning to signal a potential move higher, a move that is in-line with the fundamentals.
Weekly stochastics are rising, indicating longer term momentum is swinging to the upside. The daily chart’s 14-RSI is also moving steadily higher confirming the short term bullish run. The USD/JPY has already retraced 38% of the April to May move lower and a rebound in the pair could continue further. The 50% and 61.8% retracement levels stand out as potential targets, coming in at 82.55 and 83.25 respectively. Before these retracement targets, near term resistance comes in at 82.20 followed by 82.80.
The rising trend line off of the May low should prove to be supportive with significant support at this week’s low at 81.30.
Click here to read Part II, fundamental analysis of the Japanese yen.
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