NEW YORK (Forex News Now) – As of around 8:50 A.M. GMT on Tuesday, the yen was falling against the U.S. dollar as it pared recent gains in European morning currency market trading.
This is what the analysts say about the heavily traded currency pair in the near-term:
Forexcycle holds that USD/JPY is staying in a falling price channel on the 4-hour chart and remains in downtrend from 85.92.
The realtime forex news site adds that, “The bounce from 80.88 is treated as consolidation of downtrend, further rally towards the upper border of the channel would more likely be seen.”
FXstreet, for its part, says Tuesday’s candle is trying to take out the tight range in which the currency pair traded on Monday, to the upside, with daily resistance at 82.10.
According to the site’s intraday analysis, “A move through 8120 (less likely) could see the lows again at 8100 and 8087.
In a report aimed at technical analysis trading, meanwhile, Action Forex points out that while a stronger rise cannot be ruled out for USD/JPY, any upside movement should be limited by resistance at 82.33 – which would bring about a resumption of the fall.
The site adds, “Below 80.88 will target 61.8% projection of 92.87 to 82.86 from 85.92 at 79.73, which is close to 79.75 low.”