FXstreet.com (Barcelona) - After testing support at 89.60, USD/JPY has been trading in a narrow range between this level and 89.80 during the European session. Currently the pair is testing the MA55 hourly chart level at 89.80, focusing on test the 90.00 resistance again after yesterday failed attempt.
Peter Rosentreich, analyst at ACM, comments: Near perfect rangebound action on USD JPY between 89.71 and 90.02 in the last 24 hours and despite all trends pointing lower the selling just isn't coming. The lack of heavy selling is probably due to such major support just below at 89.17 and any short sellers would have to exit their trades with impeccable timing to avoid getting burned. 90.20 still looks like a decent entry to get short on an intraday basis, but be aware over the coming days that the pair may well be forming an 'inverse head and shoulders'. More about that as and when necessary.