USD/JPY: Trying to Form a Base
USD/JPY has thus far held above its recent low at 93.79. However, the succession of lower high is still in place. A break of the resistance at 95.81 is needed to improve the technical configuration. Another resistance can be found at 97.02 (see also the declining trendline). Supports are at 93.79 (13/06/2013 low) and 92.57.
The medium-term overextended nature of this market calls for some caution. Even though it has not been confirmed by EUR/JPY and GBP/JPY, the move below the support at 95.80 is a medium-term bearish sign. We would however not be aggressively bearish given the short-term oversold conditions and the proximity of key supports in EUR/JPY and GBP/JPY.