Fundamental aspect:
The yen which becomes weak very fast is not good for the Japan economy. In my opinion, firstly they must make this currency strong at least for a short time before they are going to make it weak again.
Technical aspect:
As we have observed divergence at the long-term charts, the USD/JPY pair seems strengthened to the 23.6% Fibs Resistance at 89.66; if today they can break 89.43, then the fibs 38.2% at 89.30 will be their next target. As long as the retracement from the USD/JPY pair is not more than 38.2%, the weaker condition for USD/JPY (Bullish for USD/JPY) is still in a healthy condition. But if this currency can move down to the 50% Fibs at 89.01; it may cause this currency will be in a sideways situation.
Intraday technical levels:
Resistance 3: 88.73.
Resistance 2: 88.56.
Resistance 1: 88.38.
Support 1: 88.16.
Support 2: 87.99.
Support 3: 87.81.
Description:
Please pay attention for the Support 3 (87.81) and the Resistance 3 (88.73); you can take a small advantage by the bouncing situation at both of the levels for 5 to 10 pips (Scalping). But for this trade just put your stops very tight.
Best regards,
Arief Makmur
Official Analyst of InstaForex Companies Group
InstaForex Companies Group
http://instaforex.com
E-mail: Arief.jakarta@indo.instaforex.com