Forex: USD/JPY bulls ahead to 98.35/40

FXstreet.com (Barcelona) - The USD/JPY has shot higher during European trading Thursday, after a failed downside attempt at the 98.00 barrier was met with a fierce rebound. Having risen nearly 35 pips in recent minutes, the pair now is firmly entrenched in positive territory (+0.28% above its opening), settling at 98.35/40.

According to Research Analyst Gareth Berry at UBS, “The intraday indicators for the USD/JPY suggest a bullish trend, as there is scope for a test of resistance at psychological 100.00; a break above would open 101.45, while support is at 97.22 and 95.80.”

“The USD/JPY is currently trading below its linear regression indicators, as momentum indicators are negative. The upside move that occurred in the past two days is a correction for the sharp drop earlier. Therefore, we might face a bearish move that is valid by stability below 98.45.” warns the ICN.com analyst team.