USD/JPY Finds Temporary Support at 95.80

USD/JPY (daily chart as of August 16, 2013) bounced off 95.80 area on August 12 and reached a high of 98.60 yesterday with a bearish candlestick well below the downtrend line (blue bold line on the daily chart), which is now located at around 99.30. The 95.70/80 support level (mentioned on our August 6 analysis) was the June 14 high, the June 18 high, and also the April 16 low.

The daily MACD is making a bearish crossover below zero but with slowing momentum, and the daily RSI is trying to test 50 once again from below. Note that both the MACD and RSI are confirming the price action with downtrend lines that has been in place for about three months. The pair needs to break above those downtrend lines to resume the uptrend move.

Short-term trading strategies:
Bearish if price breaks down below 95.80 area.
1st support: 93.80 (June 13 low)
2nd support: 92.55 (April 2 low)
3rd support: 90.90 (Feb 25 low)

Bullish if price can hold 95.80.
1st resistance: 98.60 (August 15 high)
2nd resistance: the downtrend line
3rd resistance: 100.00 (multiple highs)