Forex: USD/JPY hits 90.35 as intra-day low, but it could recover to 92.50 - Commerzbank

By @ibtimes on

FXstreet.com (Barcelona) - The Dollar's decline against the Yen from Friday's high at 91.30 has continued during today's session to break MA55 hourly chart level at 90.50 and trade at intra-day lows close to 90.35. Currently the pair is trading around 90.50/60, 0.45% below today's opening price action at 90.95.

Initial support level lies at 90.30/40, and below here, 90.15 and 89.70/90 congestion area. On the upside the Dollar might find resistance at 91.15, and above here, 91.35 (Oct 16, Sept 25 high), and then 91.55/65 (Sept 23 and 24 highs).

Karen Jones, Analyst at Commerzbank, expects the USD/JPY recovering to trade above 92.50 as Commerzbank views the recent low as key turning point: We look for recovery to 91.75 (the July lows) then 92.55/90 (50% retracement of the sell off from August). The market has recently rebounded just ahead of major support, which extends from 87.60-86.30 and contains this years lows, a 14 year support line and an inter-year pivot line. From a longer term perspective we view the recent low as a key turning point.

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