Forex: USD/JPY recovers the mark of 88.60/61

FXstreet.com (Barcelona) - The recent comments out of Japan ahead of the BoJ meeting next week has clearly driven the USD/JPY this week, as it has fluctuated wildly on quotes from senior officials. After suffering a cataclysmic decline yesterday, the pair recovered strength during overnight trading and now resides firmly in positive territory at 88.60/61, up a steadfast +0.25% Thursday.

“The USD/JPY’s attempt to the upside yesterday remained limited below the linear regression indicators as supported by our data. The pair is still trading outside the ascending channel breaking its key support level, therefore we expect a new bearish attempt today, and stability below the 88.20 level will support this outlook as the stochastic is showing negative signals supporting our expectations.” notes the ICN.com analyst team.

After rising through calculated resistance at 88.20 and 88.50, the ICN.com analysts suggest that a breach of the 88.80 level will trigger further means of resistive correction at 89.00 (key level) onto 89.30. Conversely, the pair is slated to face support at the 87.90 region, followed down to 87.45, and 87.15.