USD/JPY has climbed back toward the 78.30 zone as it corrects oversold levels after bottoming out at 77.94 during the European session. At time of writing, the cross is quoting at the 78.25 area, still down 0.2% on the day.
"Now that the bears have had time to re-group and push through 78.00 (77.94 low), there is plenty of space on the downside to explore with very few support levels to tackle and putting us on course for our 77.66 target", says Swissquote Bank SA team.
"Should USDJPY break below the June 6th pivot low and downtrend top, the next areas of supply will be lying at 77.66 (1stJune low), 77.36 (13thFeb low) then 76.58 (3rd& 17thJan low)", they say. "The next levels of resistance remain unchanged at 79.16 (18thJuly high), 80.21 (reversal), 80.62 (2ndMay high), 81.60 (failed corrective rally), 82.56 (6thApril high), 82.99 (3rdApril high), trigger resistance at 83.40".