USD/JPY loses grip on 98.00, downside move still valid

FXstreet.com (New York) - The USD/JPY foreign exchange rate suffered a movement below the 98.00 region Monday, still securing its hold in positive territory however during US trading.

Technically speaking, the USD/JPY is now trading at 97.90, easing off its highs (98.14), though still notching an advance of +0.28% above its opening. Briefing the technicals, the USD/JPY is currently testing resistance at 97.90, a break of which will open up 98.21 and 98.56, notes the Mataf.net analyst team.

USD/JPY strategic bias

According to the technical analyst team at ICN.com, “The USD/JPY fluctuated last week and is currently trading around 50% correction at 97.65. The stochastic is showing a negative bias and RSI is stable below 50 supporting the descending channel that started to affect the pair since placing the top at 101.53. The possibility of a downside move is valid this week, but Risk/Return ratio is inappropriate at those levels forcing us to remain neutral, whereas the downside move requires stabilizing below 99.00, and confirming bearishness requires breaking 96.75.”