Forex: USD/JPY searches for direction, trading at 93.27/32

The USD/JPY has oscillated between a sizable 57-pip range Friday (92.93 – 93.50), as the exchange is behaving in a volatile manner during European trading. In recent minutes the pair has rebounded off the 93.22 level after an earlier failed attempt to break higher. In these moments, the pair is operating at 93.27/32, up +0.18%.

According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “Overall, the USD/JPY is illustrating directionless near-term action, which requires break of either side to establish fresh direction. A loss of 92.00 base could open way for stronger correction and expose the initial 91.53 Fibonacci support, while a retest of the underlying bull trend sees a break above 94.45 as a trigger for extension towards the next target at 95.00.”

Drvenica isolates the resistive means at the 93.40 handle up to 93.85 and eventually 94.00 (key upside barrier). Should any pullback initiate, a downward plunge below 93.00 handle will instigate means of support at 92.76 and 92.21.