FXstreet.com (Barcelona) - After sliding to 92.90, USD/JPY has risen to trade above 93.00 again and post new daily high at 93.45 in the American session. Currently pair is trading around 93.00/10, posting 0.20% daily gains from opening price action.
Next resistance level lies at 93.20 (Asian high and Aug 27 low), above here, 93.45 (Aug 28 low) and 93.65. On the downside, support levels lie at 92.71, and below here, 92.55 (Aug 31 low) and 92.35/50.
James Chen, Chief Analyst at FX Solutions, comments: Currently, price has consolidated near the upper border of this bearish channel. A key event to watch for would be a breakdown of the short-term uptrend support line which is currently running counter to the prevailing trend, and which potentially represents a correction/consolidation within the overall downtrend. In the event of a substantial breakdown below this short-term uptrend line, a key downside support target resides around the 91.75 price region, which was triple-tested in early July before the pair made a significant bullish run. In the opposite event of a breakout above the current parallel downtrend channel, several upside resistance targets are in focus, including the 95.30 price region.