We had of course a break below this level when the big equity plunge took place 10 days ago but it was a short stay below. Now the market has quietened down again and traders must decide between their bullish USD tendencies and their risk-aversion plays in the JPY crosses. Most people I know are quite bullish USD/JPY and have been for some months now. I’m less convinced. I think this pair will trade roughly in an 87/97 range for the next few months before eventually deciding on its next big move. I’m staying in the sell-rally camp.
The 200-day MA is at 91.20 and there are previous pivos at 91.10 and 91.30 so this level will again be the one to watch.