USD/JPY remains capped by Fibo level

FXStreet Team FXStreet

FXStreet (CÃ³rdoba) - The USD/JPY continues to trade near the top of today range, although it has pulled back slightly from highs after failing to break above the 101.85 area.

The USD/JPY came under strong pressure last week amid risk aversion and dropped more than 200 pips before finding support at the 101.20 zone on Friday. The pair recovered Monday but with the bounce capped by the 101.90 zone, it was confined to a phase of consolidation. At time of writing, the USD/JPY is trading at the 101.60 zone, recording a 0.3% gain on the day.

USD/JPY outlook

"The greenback managed to gain some ground against the yen, with the USD/JPY advancing up to 101.85 this Monday, finding intraday resistance in the 23.6% retracement of the 105.43/100.66 daily fall", said Valeria Bednarik, chief analyst at FXStreet. The analyst notes that a break above the Fibo resistance might see the pair rising toward the 100-hour SMA, which offers resistance at 102.30.

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