Lack of follow-through.
(By Yann Quelenn)
• USD/JPY has broken resistance given at 113.26
(27/09/2017 low) before bouncing lower. Strong
support is located at a distance at 111.12
(20/09/2017 low). The pair is trading in a range
above hourly support at 112.22 (29/09/2017 low).
Downside risks are nonetheless rising as markets
may soon take some short-term profit.
• We favor a long-term bearish bias. Support is
now given at 99.02 (10/08/2013 low). A gradual
rise towards the major resistance at 125.86
(05/06/2015 high) seems unlikely. Expected to
decline further support at 93.79 (13/06/2013 low).