- USD/JPY managed to erase losses from lows of 101.20, but upside seems to be loosing traction.
- Likelihood of another BoJ disappointment at the Sept 21 meet is rising, putting upside risk to the near-term path for JPY.
- Technicals still paint a bearish picture, indicators point south.
- The major is managing to hold above 20-DMA support currently at 101.52, but momentum signals have turned, and the RSI is now below 50.
- USDJPY is attempting a clear break below the 20-DMA, which then see scope for test of 98.90 (trendline).
- Major support levels - 101.52 (20-DMA), 101, 100.75 (Aug 3 low), 101.41 (23.6% Fib), 99.54 (Aug 16 low)
- Major resistance levels - 102, 102.12 (Sept 7 high), 102.58 (38.2% Fib), 102.62 (50-DMA)
Recommendation: Good to short decisive break below 20-DMA, target: 101/ 100.75/ 99.55/ 99
