Renewed weakness in USD/JPY on the back of a minor correction after Wednesday’s rally, also accentuated the downside in the cross.
The Yen will continue to benefit from risk aversion and safe haven flows and while the BoJ remain a positive tone in respect to their target, thus further denting prospects for upside in the pair.
Techs point lower, correction in the pair could extend upto 87.70 levels. Breaks above 89.15 could buoy bulls taking the pair higher. invalidation on breaks above 90.20
Daily Stochs have turned lower from overbought levels and show a crossover, is also biased lower
The pair is currently trading at 88.68, immediate resistance is seen at 89.15, while support on the downside is at 88.22 (Nov 23 lows)
Good to sell rallies around 89.0, SL: 89.50, TP: 88.0