NEW YORK (Forex News Now) – As of around 7:15 A.M. GMT on Wednesday, the dollar was hovering close to a 15-year low against the yen during early European currency market trading.
This is what the analysts say about the heavily traded currency pair in the near-term:
Forexcyle holds that USD/JPY is staying within a falling price channel and remains in downtrend from 85.92, with the rise from 81.55 more likely a consolidation of the downtrend.
According to the site’s intraday analysis, “As long as the channel resistance holds, another fall to 81.00 is still possible.”
FXstreet, meanwhile, notes that the currency pair’s bearish momentum remains intact. Hourly indicators support the bearish bias, with the USD/JPY barely holding above 81.70 static support zone, the realtime forex news site says.
The site adds that, “The upside remains limited by 82.20 price zone, so only strong gains above that level, could ease partially the downside pressure in the cross.”
In a report aimed at technical analysis trading, meanwhile, Actionforex points out that USD/JPY is still staying in tight range above the temporary low of 81.54 as consolidations continue.
However, the site goes on to say that, “Stronger recovery cannot be ruled out but after all, break of 83.15 resistance is needed to be the first signal of bottoming.”