USD/JPY: Despite the latest bounce, the pair still remains confined to a very strong downtrend and any rallies are seen limited, in favor of a bearish resumption. Look for any additional rallies to stall out at current levels in the 91.00’s, with only a break and close back above 92.35 to delay outlook and give reason for re-think. Key support now comes in by 87.35, and we look for a break back below this level over the coming weeks to confirm bearish continuation and expose a retest of the recent multi-year lows at 84.80. Initial support comes in by 90.15.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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