USD/JPY’s rally came within a mere 20 pips of testing the 50% retracement of the 110.70 (August 15, 2008) to 97.11 (December 17 and January 21) range before taking a breather. 98.20 and 98.00 are modest support levels on dips. 97.65 is shaping up as solid support on dips through stop-loss sell orders continue to build on a break.
In the medium-term, 102.15, the measured-move objective from the double bottom triggered on the break above 94.65 remains a viable top-side target. Along the way, the 200-day moving average comes in at 100.25. Expect a wall of barrier options at 100.00.
