USD-JPY: As further strength saw the pair breaking and closing above the 92.31 level, its Oct. 27 high, on Wednesday, threats are now seen toward its established falling channel top, currently at 93.60.
From the big-picture perspective, the pair is trading within its broader falling channel and that channel top is expected to provide resistance if tested, thus turning the pair back down. However, if that fails to occur, its Aug. 24 high at 95.05 will be targeted.
Its daily RSI is bullish and pointing higher, suggesting further strength. On the downside, support starts at the 92.31 level, its Oct. 27 high, followed by the 91.31 level, its Nov. 4 high, and then its Dec. 4 high, at 90.77, where we expect a reversal of roles to turn the pair higher.
Further down, the 88.30 level (its Dec. 14 low) and the 87.35/10 levels come as the next supports. On the whole, with corrective strength continuing to be seen, USD-JPY now eyes the 93.60 level or even higher.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.