USDJPY’s bounce from 86.26 extended to as high as 88.11 level. Further rise towards the upper boundary of the falling price channel on 4-hour chart is still possible, and next cycle top is nearing. Key support is at 86.80, a break below this level will indicate that a cycle top has been formed at 88.11, then the following downward movement could bring price towards 84.82 (2009 low).



Daily Forex Forecast

USDJPY’s bounce from 86.26 extends to as high as 87.71. Further rally to 88.00-88.50 area to reach the next cycle top on 4-hour chart is still possible. Resistance is at the upper boundary of the falling price channel, now at 88.60, as long as the channel resistance holds, the price action from 86.96 is treated as consolidation of downtrend from 94.98 (May 5 high), and another fall towards 84.82 (2009 low) is still possible, only a clear break above the channel resistance could indicate that the fall from 94.98 is complete.



Daily Forex Forecast