The 97.80 level in USD/JPY looks to be a bit of a line in the sand today with a break lower opening the way for a move to retest 97.00. The daily chart shows the 5 DMA having crossed back above the 15 DMA, last time this happened the USD/JPY rallied 10 big figures, now while i am not expecting this to occur, a break above that 99.00/20 region where the 200 DMA comes in could see the USD/JPY push on to the 102/104 region.
I am changing my bias today and looking to buy USD/JPY on dips to 97.50 and 97.00 with stop below 96.45. I am a little concerned about the divergent state of the weekly technical studies, but i am still willing to have a play from the long side and see how things pan out. It is also worth buying on the break of 99.00 as we should see a quick 100 pts for the taking.
