Forex: USD/JPY testing resistance at 92.83

The USD/JPY has surged higher Friday morning, as European trading has taken the cross from negative territory up towards its first resistance at 92.83. At the time of writing, the cross is testing it trading near its session highs (92.96), having settled at 92.88/89, up a sizable +0.36% on the day.

“The USD/JPY is gaining pace after sustained break above 92.00 handle and pennant-shape consolidation, avert immediate downside risk. The retest of 92.70 (50% of last Friday’s sharp fall), brings more positive tone into the hourly structure, however 4h studies still are holding in the negative territory, which require a break above the 93.00 zone and the 61.8% retracement for confirmation.” Notes Slobodan Drvenica, an Analyst at Windsor Brokers Ltd.

The pair is testing initial resistance at 92.83 and Drvenica calculates that the USD/JPY advance will be tested at 93.14, onto 93.68, and finally the 94.00 upside barrier. Conversely, a pullback will lead to supportive fortifications at 92.43, down to 92.00, and 92.62.