USD/JPY outlook – watch for a break above daily high
Despite dollar’s retreat from the Asian session high of 100.97 and a break below 110.68 (23.6% of Brexit drop) – 100.71 (50% of 2011 low – 2015 high), the pair has managed to avoid a violation of Wednesday’s low of 100.19.
Hence, a recovery from the current level of 100.44 if followed by a move above daily high of 100.97 would open doors for a rally to 5-DMA of 101.35. Further gains could run into resistance at 101.85 (38.2% of Brexit drop).
On the lower side, only a day end close below 100.19 would suggest the corrective move from post Brexit low has ended and could yield re-test of 98.79 levels.
Hence, a recovery from the current level of 100.44 if followed by a move above daily high of 100.97 would open doors for a rally to 5-DMA of 101.35. Further gains could run into resistance at 101.85 (38.2% of Brexit drop).
On the lower side, only a day end close below 100.19 would suggest the corrective move from post Brexit low has ended and could yield re-test of 98.79 levels.
