USD/JPY: Strong resistance at the 106.00 Fibonacci retracement
13:45 GMT - The anticipated test above the 105.50/68 barrier has reached 105.77, where unwinding intraday studies are prompting short-term reactions.
There is potential for a run towards the 106.00 Fibonacci retracement, but overbought daily stochastics are expected to limit any immediate tests in profit-taking. A short-term pullback is possible, but rising weekly charts should limit losses to the 105.17 high of 2 February and congestion around 105.00.
A close beneath this area, if seen, would delay further gains and turn sentiment outright Negative.
Subsequent focus would then turn to 104.50/58.
There is potential for a run towards the 106.00 Fibonacci retracement, but overbought daily stochastics are expected to limit any immediate tests in profit-taking. A short-term pullback is possible, but rising weekly charts should limit losses to the 105.17 high of 2 February and congestion around 105.00.
A close beneath this area, if seen, would delay further gains and turn sentiment outright Negative.
Subsequent focus would then turn to 104.50/58.
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