Technical Forecast for USD/JPY
USDJPY held above 95.85 & has pushed through 96.30. We failed to break the 96.55/71 highs as expected with the market starting to look overbought. This has left a small double top pattern which should put the market under pressure. We are looking for continued weakness to 95.84 today & possibly a test of 95.34/29. We should see a bounce from here again as it is strong support. However a break of 94.85 could keep the pressure on for 94.48/42 to offer a potential buying opportunity this week.
However any shorts near the 96.50/70 highs need a stop above 96.80 as we can then target 97.14 & although we are getting very overbought in the short term, 99.74/79 is not out of the question.
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