Forex: USD/JPY trapped around 80 following wild swings (Barcelona) - USD/JPY is currently at 79.93, off fresh weekly lows at 79.75. The pair is still down for the week by -0.63%, following the big swings in last two days have taken the Japanese Yen up and down in sharp moves, with uncertainty coming from last US Presidential elections that finally won Obama yesterday, and up coming US “fiscal cliff” fears, also coupled with strong moves in the US bond markets. 10 year bond yields reached yesterday a 1-month low near 1.61%.

According to Valeria Bednarik, Chief Analyst at “The hourly chart shows price still  below 100 and 200 SMA, with the latest offering short term resistance around 80.00,  while indicators stand in negative territory, yet losing earlier bearish potential. In the 4 hours chart technical indicators also lost the bearish tone, and are slowing turning north, although still below their midlines. Immediate support now comes at 79.60, 200 DMA, followed by recent daily lows around 79.20. Daily close below mentioned DMA will set the tone for a possible retest of the 78.80 area over the upcoming sessions, while a return above 80.00 will signal a short term bullish continuation in the pair.”

Valeria finds support levels at: 79.60, 79.20, and 78.80, while resistance levels at: 80.00, 80.30, and 80.60.