Flash: USD/JPY looks set to test 96, at least - TDS

FXstreet.com (Barcelona) - USD/JPY has successfully been able to move away from key support — February low at 97.04 and the 200-day MA at 97.35 - , however, risk to the downside remain, notes the TDS FX Strategy Team.

Key Quotes

" Intraday, price action suggests the USD is trying to base (minor bull “hammer”) but there has been a shift in this market’s trend dynamics over the past few weeks that suggests to us that a rebound may struggle to get any sort of traction at the moment."

"We rather favour the downside here still and a push to test the August low just under 96 at least. Short-term, we think gains are likely to be limited to the upper 97 area."

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