FXstreet.com (Barcelona) - The Yen went trough a sharp rally on Thursday, which halted at 93.75 area, approaching 94.10/50, where the current rally is expected to fail, according to Karen Jones, technical analyst at Commerzbank.
The pair faces resistance at 94.10/50 area where the upside boundary of the 2 1/2 year down channel lies, which, according to Jones is a tough resistance band: Directly overhead the market faces daunting resistance in the 94.10-94.50 band and we expect to see initial failure. This is the 2½ year down channel and the 23.6% retracement of the entire 2½ year sell off at 94.10. This is a tough band of resistance and we expect to see initial failure.
On the downside, Jones points out to 91.65/25 support level: Nearby support is located at 91.65/25 and failure here will signal weakness to 89.30, 88.25.