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12 Jun 2013
USD/JPY stops the bleeding above 96.00
FXstreet.com (Barcelona) - USD/JPY is last near session highs at 96.24, off fresh weekly lows at 95.58. “Losses almost fully retraced Fri/Mon 94.97/99.27, with immediate risk seen on retest of 94.97 and possible fresh extension of broader downtrend from 103.72,” said analyst at Windsor Brokers and contributor at FXstreet.com Slobodan Drvenica.
Slodoban believes the “negative tone prevails on short-term technicals and favors further downside,” the analyst says, “however, oversold hourly conditions cannot rule out corrective rally, before bears take control,” he warns. The pair is down -1.35% so far for the week, while Nikkei index futures points for an open nearly down -2%.
For the technical levels, Slodoban finds “supports at 95.58, daily low and 95.39, daily Ichimoku cloud base, en-route to 94.97, below which there is no serious obstacles towards 92.56, 02/04 low.” On the upside, he expands, “Fibonacci levels of 23.6% and 38.2% at 96.45 and 97.00, offer initial resistances, while stronger rallies expected to hold under 97.42, 50% retracement of 99.27/95.58 descend.”
Slodoban believes the “negative tone prevails on short-term technicals and favors further downside,” the analyst says, “however, oversold hourly conditions cannot rule out corrective rally, before bears take control,” he warns. The pair is down -1.35% so far for the week, while Nikkei index futures points for an open nearly down -2%.
For the technical levels, Slodoban finds “supports at 95.58, daily low and 95.39, daily Ichimoku cloud base, en-route to 94.97, below which there is no serious obstacles towards 92.56, 02/04 low.” On the upside, he expands, “Fibonacci levels of 23.6% and 38.2% at 96.45 and 97.00, offer initial resistances, while stronger rallies expected to hold under 97.42, 50% retracement of 99.27/95.58 descend.”