FXstreet.com (Barcelona) - USD/JPY has risen around 85 pips since the beginning of the American session, from 98.15 to reach 98.90, fresh one-week high. Currently the pair is trading around 98.70/80 after rising 1.2% so far today from opening price at 97.61 and reach 97.15 as intra-day minimum.
According to Valeria Bednarik, FXstreet.com provider, USD/JPY 98.90 is a key fibo level: Pair is facing right now, what we can consider an inflexion point: the 38.2% of the upside daily rally from 93.54 to 101.44. Daily charts show correction extends almost to the 76.4% of the mentioned rally, before regaining the upside, with a clear reversal hammer at the bottom from past Wednesday. Long term perspective will confirm bullish once the pair manages to close a daily candle above the 98.45 zone. Next resistances will came at 98.90 and 99.20 ahead of the 99.60 zone. Failure to break today, while remaining above the 98.00 level supports the view. Pair must break under 97.55 to regain the downside, and does not seem likely at this point.
Bednarik concludes: Upside bias is also supported by the break of the descendant channel, of around 180 pips height that sets a probable target for the formation around the 99.00 area.
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