Forex: USD/JPY testing 97.60 support

on Jul 31, 2013
Listen Wednesday July 31st_: The pair’s daily candle yesterday opened at 98.03, with the price reaching a high at 98.45 and a low at 97.74 before closing at the 98.00 psychological level. So far today the quote has been falling and is currently trading at 97.68, 0.32 percent down on the opening. The day’s low so far of 97.57 is also the lowest price in the past 28 days.

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Since Friday the USD/JPY has been testing the lower line of a descending channel and right now the price is again sniffing at that boundary. The 97.60 level acted as a strong support in the week 24 to 28 June and may do so again now.
The 89- and 200-period moving averages are floating above the price action on the 1H and 4H timeframes, indicating that the pair is in a short term downtrend and that further decline is in prospect. If this proves to be the case and the 97.60 resistance is broken, the pair would fall to the 25 June low of 96.94. Beyond that point, the 13 June low of 93.77 would loom into view.
Heading north, the price could be expected to test the upper line of the channel and the 100.00 psychological level. Further upwards, the main target remains the 103.73 top from 22 May.


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JPY Forex