A last hour 20 pips drop on prices into a new 3-day low at 92.66 is perhaps a good reflection of the fading sentiment toward the pair, which ends the NY session posting a third consecutive day of losses, a 3-day correction sequence observed only once before - from Jan 21 to 23 - since the onset of the rally in mid November.
From a daily perspective, we can see how USD/JPY has established in a 200`pips range between 94.36 and 92.00, thus there is still no evidence to call for a top in the pair, still a dangerous proposition after such a resilient rise since mid Nov last year.
As Fan Yang, CMT, chief analyst at FXTimes notes, "a break below 92.00 might be needed to convince the market there is a top in USD/JPY, and usher in some significant bearish correction that the USD/JPY has not had in its sharp bullish trend..."
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