FXstreet.com (Barcelona) - After falling 55 pips in the early American morning from 89.15 to find support at 88.60 support level (1-week low reached last Friday's session), extending declines from yesterday's high at 90.00, USD/JPY has been trading in a narrow range between 88.60 and 88.85 during the rest of the session.
Currently the pair is trading around 88.60/70, 0.90% below today's opening price action at 89.55.
Valeria Bednarik, FXstreet.com collaborator, comments: Pair remains strongly bearish mounted on market sentiment, likely to extend the downside to previous strong 88.20 low. Clear break under that level could confirm an extension of the rally, with next key target at the 87.10 area, yearly low. Indicators show current rally a bit over extended in 4 hours charts, so we could see a pullback to the 89.00 area, before a new down leg. Upside likely to remain limited by the 89.60 level.
Bednarik provides us with her levels: Support levels: 88.80 88.50 88.20. Resistance levels: 89.00 89.30 89.60.