200 DMA to support dollar weakness

The USD/JPY FX pair has not taken a trip below the 200 daily moving average since November 2012.

Given that there is presently a confluence of the three key moving averages, one could expect to see the 200 daily moving average provide support to any US dollar weakness – this potential bidding area coincides with the downtrend support witnessed from the highs of ¥103.50 last seen in late May.

Any move below the ¥97.70 level could see the yen garner further strength, and opens up the possibility of a return to ¥94/94.50 levels and the 38% retracement of the November 2012 uptrend.

The ¥100.60 level will need to see a breach on a daily basis to target the ¥101.50 level, and following that, the highs of this year.

Spot FX USD/JPY (DFB) chart

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