FXstreet.com (Córdoba) - The Dollar is has extended its decline against the Yen, erasing part of Friday's gains. USD/JPY fell to 89.01 reaching a fresh intra-day low. Form there the Dollar recovered and currently trades at 89.23/26, which is 1.05% below today's opening price. Greenback is heading toward the first daily decline after rising in the last four days.
If the pair falls below 89.00 the next support levels lie at 88.60/65 and below at 88.40 and 87.90/88.00. On the upside, resistance levels could be located at 89.70 and above at 90.00/05 and 90.55.
James Chen, chief technical analyst at FX solutions affirms: After the marked bullishness that dominated on this pair last week, has respected a key downtrend resistance line (within a parallel downtrend channel) extending from the April high. Monday's price action retreated from this downtrend resistance after hitting a 4-week high on Friday. Continued bearishness coming off that high should continue the prevailing downtrend in the pair, targeting support around 88.00 once again, with further support around the 87.00 price region.