USD/JPY Technical Analysis– Prices declined as expected after putting in a Bearish Engulfing candlestick pattern. The pair is testing below support at a rising trend line set from late February, a barrier reinforced by the 61.8% Fibonacci retracement at 95.76, to challenge the 76.4% level at 93.88. A drop beneath the latter juncture exposes swing lows at 92.56 and 90.84. Alternatively, a move back above 95.76 aims for the 96.70-97.28 area (marked by the 50% retracement and the March 12 high).
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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