The USD/JPY pair had a choppy session on Thursday, testing the 200-exponential moving average and showing signs of volatility. If we can break above the top of the candle, the market will probably bounce. However, if we continue lower I think that the 110 level should be a significant area of support. It’s the 50% Fibonacci retracement level, and of course a large, round, psychologically significant level. Ultimately, this is a market that will show quite a bit of volatility but given enough time I do think that the buyers will return.
Written by FX Empire