FX.co ★ Technical analysis of USD/JPY for May 15, 2014

The Japan prelim GBP for the first quarter came very notable at 1.5%. USD/JPY is holding the support level at 101.4, a May 07 low. On the upside, it is facing resistance at 102.36 (50daily SMA). For the last two days it has been making lower lows and lower highs. The pair is in a safe zone until it trades above the 101.40 levels. If it breaks, then it will drift all the way towards 100.60 levels, below this, next major fall to 98.4 and 97 levels is expected. USD/JPY broke the weekly support trend line last week and closed below it. Traders can go short below 101.33 for 101.2 and 100.75 levels. If the previous low of 101.40 holds , it can fly up to 102.30 and 120.75 levels.