*USD/JPY Limit Buy at 87.30

Renewed weakness in the Dollar and overall Japanese Yen strength continues to push the pair lower. A retest to the 87.15 low looks to be just a matter of time with demand likely to be built at the level.

USD/JPY, fell below the 88.00 level and is likely to reach January 2009 lows at 87.15.

Although prices may head lower from here, investors will be cautions below 87.00 as intervention fears may emerge.

The Japanese government has become more outspoken against further Yen strength, stoking speculation of market intervention if moves become one sided.

Some currency traders still look for a decline to January lows at the 87.15, on Dollar weakness and speculation of renewed risk aversion. Below the January low, they are looking at the 80.00 as a point where the Government would have no choice but to intervene in the markets.

From current levels 87.70, the pair finds resistance at 88.30 followed by 89.00 and 89.21.

With further downward pressure, the pair finds initial support from current levels at 87.15.

Following this level, USD/JPY will encounter support at 86.62 and 86.00.

TREND

Near Term: Neutral
Medium Term: Bearish
Long Term: Neutral

Trading levels in play:

*Although this move is against the overall trend we may find  strong demand levels at the 2009 lows. Lower position size.

Limit Buy @ 87.30 Targets: T1 87.62 – T2 94.40 Risk: 86.80
* After 15 pips profit move stop to entry, take profit at will. Trade is canceled if it rebounds near entry and moves higher by 20 pips. Will follow up with comments if outlook changes.

DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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