NEW YORK (Forex News Now) – As of around 6:40 P.M. GMT on Tuesday, the yen was consolidating gains versus the dollar, after approaching a 15-year low during European afternoon currency market trading as FX traders digested the Bank of Japan’s surprise interest rate decision.
This is what the analysts say about the heavily traded currency pair in the near-term:
Forexcyle holds that a break below 82.87 will indicate that the downtrend from 94.98 (May 5 high) has resumed, then further decline towards 79.75 (1995 low) could be seen.
In a report aimed at technical analysis trading, the site says: “Resistance is at 84.00, only break above this level could indicate that a cycle bottom has been formed on 4-hour chart, then further rise towards 85.92 key resistance could be seen.”
Meanwhile, Actionforex notes that in the event of another fall, strong support should be seen at around the 83 mark to contain downside movement, in light of the risk of further FX intervention by Japanese authorities.
In the site’s intraday analysis, Actionforex adds that, “On the upside, [a break] above 83.97 will flip intraday bias back to the upside for upper side of recent range of 82.86/85.92.”
According to FXstreet, USD/JPY has resumed its bearish trend, with the hourly chart showing a strong bearish momentum in the cross.
“Barely above 82.15 support past day’s low,” the realtime forex news site adds, “break of the level will find next support at 82.90 15 years low, thus expect the pair to break and trigger stops of contrarian traders, falling towards the 82.50 price zone.