USD/JPY down move seems to lose some momentum and may by shows the first cracks in its strength, move after pair failed to hold and make a sustain gain above 76.41 support level, this move dismissed the rebound in price and clearly shows the strength in bears. Our intraday bias is bearish as long as pair is trading below 77.09 resistance level. Sustain trade below 76.81 would indicates that rebound will resume and price would extend further down. In that case, price should target 76.52 support level. If that key support that doesn’t hold price will trigger down move to 75.94 level.
On the opposite side, recovery is limited below resistance level at 76.81, sustain trade above it would confirm the rectangle pattern. Price to extend further, pair should overcome 77.09 level and manage a sustain gain, Only sustain gain above that resistance level would make path for further increase in price – towards 78.23 level.
Daily Pivots: Pivot Point – 76.18, 1st Support – 76.01, 1st Resistance – 76.35