Preference: BEARISH
Reference Area: 117.18-117.59
The safe-haven yen made a comeback as markets remain concerned about China’s economic condition and the fall of crude oil below $30 per barrel.
Technical Analysis:
USD/JPY remains under pressure, testing intraday key support at 116.50. If the support breaks, yen may continue to strengthen to 116.02-115.61.
Note that hourly stochastic and CCI are oversold. As an alternative trading strategy, watch for bearish signal confirmation on a pull-back move to within the reference area at 117.18-117.59 with target at 116.92-116.50.
Be careful if the resistance at 117.59 breaks, because it will turn the intraday bias to bullish and possibly will be followed by a bullish move up to 117.89-118.27.
Guest post by Andrew Bulan, analyst for www.EconomicCalendar.com
