FXstreet.com (Barcelona) - After falling around 100 pips during the European session from 91.15 to reach 7 month low at 90.10, USD/JPY has begun to rise to recover all of previous losses and jump around 125 pips in the early American session to break MA55 hourly chart at 90.80 and test 91.40.
Currently the pair is trading around 91.00/10, 0.10% above today's opening price action.
According to Karen Jones, technical analyst at Commerzbank, the Dollar is targeting 87.54/15 area: We view near term strength as corrective only and look for rallies to remain capped by the 20 day ma at 92.77. We continue to target 87.54/15 - this latter zone represents the recent lows and the long term support line, which connects the 1995 and 2009 lows.
The ecPulse.com analysis team comments about the Greenback recent gains: The yen weakened against the dollar in the American session, where the pair moved again to the upside after touching the low of the session at 90.12; failing to continue through alongside heavy selling pressures took the pair to the upside to retest 90.75 areas and failure to hold above that level will take the pair to retest the mentioned low where breaching that level opens the way for the pair to extend the downside wave.
Valeria Bednarik, FXstreet.com collaborator, comments: After reaching 90.00 level, pair turned slightly bullish in the hourly chart, yet general trend remains strongly bearish in the pair. 20 SMA around 90.70 will be first resistance to consider, followed by the 91.10 zone. Break under key 90.00 pair should accelerate the fall with a midterm target at 87.10, past January lows. Only above 91.70 pair could change bias, and does not seems likely to see it there in the next days.