The technical situation for the USD/JPY pair becomes very sensitive for intraday traders as it is currently hovering around 50% Fibonacci retracement of the two candlesticks upside rally from 75.55 to 79.50 zones, while Stochastic approaches oversold zones. Despite breaching the key support of 77.80 with consecutive four-hour candlesticks, but the pair has a solid support around 77.10 zones-61.8%- where SMA 100 exists. Anyway, the bullish picture may come back into focus once the pair stabilizes above 77.80 again. Conversely, areas of 76.40-76.10 should hold to keep the awaited bullish resumption valid.
The trading range for today is among key support at 76.10 and key resistance now at 79.55.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair above 77.80 targeting 80.05 and stop loss below 76.40 might be appropriate.|