USD/JPY Hesitating

USD/JPY has had a good bull run that came as a surprise when market participants expected the Abenomics (economic policies advocated by Shinzo Abe) to continue to lift the Yen against its peers. However, the Yen reached a low of 100.08 and then reacted to the upside thus confusing USD/JPY bears.

The rally came short when the pair reached a high of 104.63 which does not coincide with any of the resistance levels. Now the price has retreated to lower levels and the pair is currently trading at 103.49 with a low of 103.41.

Main trend on the long-term remains bearish, but what is interesting is that the pair had had three strong bounces off the support line at 98.95, 99.54 and the latest - 100.08. In order for the bearish trend to continue, bears must get a close below those levels.

On the other hand, bulls may have the easier task as the have some momentum with the recent rally. They may be able to reach the 200SMA at 107 before year end.

Chart: USD/JPY D1