USD/JPY Bounces Off The 88.00 Level Strongly

The USDJPY tested the downside (and the resolve of the central bank) reaching a low of 88.00.  Along the way, the September 28th low of 88.23 was taken out. Also the trendline from the channel was also breached.

The pair moved sharply to a low of 88.00 where buyers emerged.   It is never good to take out a low or high by a few pips. It is also not good for a new low or high to stop at a “big figure” value like 88.00.  When it does, the direction can be reversed and that helped contribute to a sharp bounce.

From a technical perspective, the price will likely find support at the 88.53 level where the channel trendline on the daily chart is found.  Before that level look for the 88.82 level to provide support. This is the closing level from yesterday.

On the topside, the pair is approaching the 100 hour MA at the 89.33 level. Look for profit taking sellers against this level with stops on a move above.

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