Forex: USD/JPY recovers the mark of 95.83/84

The USD/JPY was trading in dire straights during the onset of European trading Wednesday, as the price rapidly declined to the 95.45 level (session low). After bottoming out in this region however, a recent recovery has been orchestrated, as the pair has pared some of its losses (nearly 40 pips) to trade at 95.83/84, down -0.15%, as the cross eyes the 96.00 level.

According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “The USD/JPY remains under pressure, as fresh weakness below 95.63 (March 12 low), threatens an extension of the near-term corrective pullback from 96.70, yesterday’s fresh high. Indeed, descending 4h chart indicators and hourlies are already in the red territory.”

Drvenica calculates the next supports at the 95.25 level, followed by the 95.00 barrier/downside target, and finally 94.84. On the ascension, a break above the 96.26 resistance will activate additional means of correction at 96.70 and the 97.00 upside barrier.