FXstreet.com (Barcelona) - The Yen is showing strength recently, and USD/JPY pullback from 90.00 area has taken the pair down to levels right above Sept 27 low at 88.20, on its way to test hey support levels as 87.10 and eventually 85.00, according to Nicole Elliott, senior technical analyst at Mizuho Corporate Bank.
Consolidation below the 9-day moving average is pushing prices lower on its way to re test 87.10 and 85.00 levels, says Elliott: Going as planned with 'triangle' consolidation under trendline resistance with the 9-day moving average pushing prices lower. The US dollar is slightly oversold and bearish momentum has increased. A test of this year's low at 87.10, and then critical long term support at 85.00, is imminent.
Support levels, according to Elliott, lie at 88.23, 87.97 and 87.50. On the upside, resistance levels lie at 89.07, 89.50 and 90.00.