FXstreet.com (Barcelona) - The Dollar has been unable to break 90.35/45 resistance against the Yen during the European session and USD/JPY has fallen around 65 pips from 90.45, 2-week high at 90.45, to trade below 90.00, close to 89.80.
Currently the pair is trading 0.05% higher than opening price action at 89.70 to the current 89.75/85.
Valeria Bednarik, FXstreet.com collaborator, comments that pair seem to be back on the previous downtrend channel: Pair failure to break above 90.35/45 strong resistance area, and quickly come back to 90.00, completing a pullback to the daily descendant trend line pair attempt to break earlier today. Pair needs to close daily candle above 90.10 to confirm such break and had chances to extend the upside. With hourly indicators turning lower, does not seems likely for next sessions. Clearly above 90.70 area, not seen also today, will confirm some upside continuation.
Bednarik provides us with her levels: Support levels: 89.80 89.60 89.20. Resistance levels: 90.10 90.40 90.80
We can remain that Nicolle Elliot, Senior Technical Analyst at Mizuho Corporate Bank, commented this morning on her expectations with a lower pair on the back of a Dollar oversold: Having realised we were not going to break lower, dollar/yen is now testing trendline resistance. Bearish momentum has almost disappeared but then the US dollar is no longer oversold. Prices are likely to hold above 89.00 this week, with rallies probably stalling around 91.00/91.60. These are seen as selling opportunities for another downside re-test later this year.