FXstreet.com (Barcelona) - The Dollar is trading on a weak tone against the Yen and, after a rather strong session on Friday, USD/JPY has dropped on Monday to test 96.50 support level several times during Monday's European session, a key level, according to Charmer Charts.
According to Carol Harmer, Technical analyst at Charmer Charts, below 96.50, sellers could take the Dollar lower: Now if 96.60 fails to break and 96.50 is lost look for sellers to continue with downward moves with 96.02 the immediate target, profit taking should apply at these lows and as it is a 38% longer term fib level buyers are expected to come out in defence. However buyers will turn tail and run if the market yields 95.70 as 95.45/44 will be the obvious short term target with 94.32/15 the medium term one.
On the upside, above 96.70, Harmer forecasts the following levels: If this can make a break back above 96.60 all is not lost for the Dollar and buyers should push this higher to 97.44/47 first target. Here profit taking will apply and sellers may test the water delicately just to feel if buyers would be snapping at their heels. Above 97.70 buyers would be snapping and sellers will dive for cover as 98.04/08 looms as a target for buyers.
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