USD JPY recovery stalls around 100 00

USD/JPY (daily chart) has stalled around the key 100.00 psychological support/resistance level within its recovery climb of the past month. After the currency pair fell from its 103.72 long-term high in late May, a significant downside correction occurred, bringing the pair down to a low of 93.77 in mid-June. This low also corresponded with the 38.2% Fibonacci retracement of the entire recent uptrend, from the September 2012 low around 77.00 up to the noted 103.72 long-term high in late May.

After the price turned back up around that 38.2% Fibonacci level, the pair has been in a sharp climb ever since, most recently breaking out above the key 100.00 figure just last week. That breakout, however, has not made much of a substantial follow-through as of yet, pulling back to the 100.00 region after hitting a high around 101.50 early in the week. Despite this pullback, the overall trend and current recovery both have a strong bullish bias. A subsequent breakout above the 101.50 resistance should potentially target 103.00 and then 105.00 resistance to the upside, which would confirm a continuation of the 10-month uptrend.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.