FXstreet.com (Barcelona) - The Dollar has declined against the Yen on the back of a 3.0% decline on Existing home sales; USD/JPY has dropped from levels right below 98.45 resistance to levels around 98.10 support area.
According to Valeria Bednarik, collaborator at FXstreet.com the pair should move above 98.50 to regain bullish momentum: Price is above the 20 SMA that is regaining bullish bias, supported by momentum although CCI is showing some bearish divergence in the hourly. 98.45 zone (where we have the 38.2% of the daily rally 93.54/101.44) together with a descendant trend line around 98.50, is the zone that pair needs to clear to gain bullish momentum. strong first resistance comes at 98.53, a daily descendant trend line.
On the downside, Bednarik forecasts: Under 98.15, supports will come at 97.80 zone, and 97.40/50, where we have the ascendant trend line, and some intraday lows.
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