USDJPY – The triangle support line (79.13) held well as resistance again yesterday with the pair posting a negative daily performance. We have seen follow through selling overnight with the major pair trading to a 6 week low. The medium term focus should now be on 77.61, measured move. The intraday chart is showing short term signals oversold so although our bias is bearish, we look for a mild correction to trigger another move lower In view of these facts our call is a Bearish Bias – but expect gains towards 78.72 with a stop of 78.94
Targets will be: 78.47, the overnight low, then 78.00 and towards 77.61, measured move.
Resistance levels are: 78.72, 78.94 and 79.13