FX : USD/JPY hits 90.45, 2-weeks high, but it could be back to 88.50 - Mizuho
The Dollar's rally against the Yen from Friday's October 9 low at 88.65 has continued during today's session to reach 90.45 as fresh 2-week high. Currently the pair is trading 0.60% above today's opening price action at 89.70 to the current 90.20/30, on consolidation mode after the last bullish movement.
Nicolle Elliot, Senior Technical Analyst at Mizuho Corporate Bank, expects a lower pair on the back of a Dollar oversold: “Having realised we were not going to break lower, dollar/yen is now testing trendline resistance. Bearish momentum has almost disappeared but then the US dollar is no longer oversold. Prices are likely to hold above 89.00 this week, with rallies probably stalling around 91.00/91.60. These are seen as selling opportunities for another downside re-test later this year.”
Mizuho Corporate Bank shares us with its strategy: “Possibly attempt shorts at 90.18; stop above 90.55. Short term target 89.50, then 88.50.”
