Forex: USD/JPY breaking below 87.70 support

FXstreet.com (Barcelona) - USD/JPY is currently at 87.54, pullbacking the neckline broken lower at 87.64 of a double high from Friday's and yesterday's highs at 88.39. The pair has found support at session lows 87.22, previous Jan 02/03 highs, still lower by -0.71% for the week so far on broad USD weakness.

Nikkei index is also lower so far for the day -0.11%, off session lows around the 10530 points mark, following yesterday's fresh 21-month highs at 10743. According to FXWW founder Sean Lee, “If we look at the move from 83.85 to 88.40 USD/JPY as being the latest leg of an up-move, then we may well be undergoing a normal retracement which should take us to the 38.2% level near 86.65,” the analyst notes.

Immediate support to the downside for USD/JPY lies at recent session/Jan 02-03 lows 87.24/34, followed by Jan 03 lows at 86.73, and Dec 28 highs at 86.62. To the upside, closest resistance shows at Jan 04 lows 87.60, followed by Monday's NY session highs at 87.96, and mentioned double high at 88.39.

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